Bitcoin fails to reclaim $60,000 as stocks rally on Iran peace hopes

Bitcoin buyers lack the conviction to flip $60,000 back to support even as US stocks rally on renewed hopes for a US-Iran peace deal.

Bitcoin traded near $60,539 as of 19:00 UTC on June 29, failing to reclaim the key level even as the S&P 500 and Nasdaq Composite opened the week in the green.

"Buyers have so far lacked the conviction required to establish a sustained recovery, leaving price range-bound near local lows," Glassnode said in its latest Market Pulse bulletin.

Spot Bitcoin ETF outflows crossed $4 billion in June, the largest monthly outflow since their launch, according to data from CoinMarketCap. Bitcoin is down nearly 19 percent in June, putting it on course for its weakest monthly performance since mid-2022, Akshat Siddhant, lead quant analyst at Mudrex, said. Ethereum traded near $1,630, while Solana changed hands at $75.42.

Bitcoin's ability to defend the $58,300-to-$59,000 support zone and reclaim the $61,500-to-$62,000 resistance range will determine near-term direction, analysts said. A break below $58,000 could trigger a sharper sell-off, while a move above $61,000 would signal renewed buyer interest.

The divergence between Bitcoin and equities highlights a crypto-specific weakness that analysts attribute to persistent institutional outflows and a defensive posture among market participants. Spot markets are experiencing "persistent net selling despite an increase in trading activity," Glassnode said, suggesting that available liquidity is being used primarily to distribute rather than accumulate Bitcoin at current prices.

Iran peace talks offer cautious optimism

The catalyst for the equity rally came after US President Donald Trump said on Truth Social that Iran had "requested a meeting," scheduled for Tuesday in Doha. The development follows the signing of the Islamabad Memorandum of Understanding on June 17, which established a 60-day ceasefire and called for the reopening of the Strait of Hormuz within 30 days. Both sides exchanged military strikes as recently as June 27-28, each accusing the other of violating the terms.

QCP Capital cautioned that the situation remains fluid. "While both countries appear to have agreed to stand down for now, the situation remains uncertain," the trading firm wrote. "Oil prices have remained largely stable in the low $70s, suggesting cautious optimism that tensions may ease." WTI crude fell below $68 per barrel on Friday before recovering above $70.

The initial ceasefire announcement in mid-June had pushed Bitcoin above $66,000. The subsequent breakdown to near $60,000 erased those gains as renewed hostilities and ETF outflows weighed on sentiment.

Trader Daan Crypto Trades described the current price action as "chopping around in this range at the previous June lows," with eyes on $58,000 and $61,000 as the key boundaries. "The longer price spends moving around in this region, the bigger the following move upon a range break will be," he said.

This article is for informational purposes only and does not constitute investment advice.