Bitcoin holds near $86,000 as oil prices fall on Middle East peace signals
Bitcoin holds near $86,000 as oil prices fall
Bitcoin held around $86,000 on Tuesday after reaching its highest level since late January earlier in the week. The cryptocurrency stayed above this level as crude-oil prices dropped, following comments from US President Donald Trump about a possible deal with Iran.
Bitcoin hit $87,350 on Monday, its highest price since Jan. 29, before consolidating near $86,000. The move came as global markets reacted to developments at the United Nations General Assembly in New York.
Trump's UN speech and the oil connection
Trump spoke to world leaders at the UN General Assembly and said he believed a deal to end the US-Iran war could come after the US midterm elections in November. He stated: "I believe we'll make a deal right after the election because it doesn't make sense for them not to."
Following these comments, WTI crude oil dropped as low as $89.16 per barrel, its lowest level since Sept. 4, before reversing toward $92. Reports indicated that Saudi Arabia had reopened the East-West Pipeline, a key oil-supply route. Three anonymous sources referenced by Reuters said it would take six to eight weeks for flows to reach full capacity.
Onchain data signals shift in market conditions
Blockchain analytics firm Glassnode noted that Bitcoin's market value to realized value (MVRV) ratio has crossed above its 365-day moving average. The MVRV ratio compares the total market value of all Bitcoin to the average price at which coins last moved on the blockchain. Glassnode noted that this same signal appeared in 2019 and 2023 at the start of previous bull markets.
The MVRV ratio currently stands at 1.62, up from 1.19 on Aug. 16. This remains well below the 3.7 level that has traditionally marked the profitability zone at the top of previous bull markets.
Analytics platform CryptoQuant reported that the MVRV ratio's 30-day moving average broke above 1.5 for the first time since January. CryptoQuant said this could mark the end of a long period of investor accumulation. The platform added that if the MVRV ratio moves above 1.62, it would confirm a reversal of the bear market.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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