Bitcoin’s (BTC) price is continuing to slide lower as a lasting peace deal between the U.S. and Iran remains elusive.
Bitcoin, the largest cryptocurrency by market cap, was trading at $75,700 U.S. early on May 27, its lowest level in several weeks as the Strait of Hormuz remains closed to oil shipments.
Other digital assets are also struggling, with Ethereum (ETH) trading below $2,100 U.S. and nearing the key support level of $2,000 U.S.
Analysts are starting to turn more pessimistic on crypto as digital assets continue to diverge from U.S. stocks, with S&P 500 and Nasdaq (NDAQ) indices hitting record highs on May 26.
There had been hope that the U.S. and Iran were close to reaching an agreement that would reopen the Strait of Hormuz to commercial ships.
But those hopes have now been dashed, with the two countries resuming military strikes against each other as skirmishes flare.
Now, Bitcoin is trading below BitMine (BMNR) Chair Tom Lee's $76,000 U.S. bear market threshold for the cryptocurrency.
Bitcoin’s 30-day implied volatility index (BVIV) has risen nearly 3% in the past 24 hours to 37.35%, its first gain in 10 days.
Futures traders are now placing bets that BTC will be trading as low as $55,000 U.S. by September of this year.
BTC had traded at a record high above $126,000 U.S. last autumn.
