In the past day, Bitcoin's price jumped to $67,700 but has since fallen by more than a thousand dollars, now teetering on the edge of greater losses. The weekend presented a chance for gains, yet Bitcoin is having trouble holding onto its profits. While many thought the latest inflation data would boost bullish confidence, the future direction of Bitcoin remains unclear.

Bitcoin's Struggles

Wednesday will see the release of the Federal Reserve's minutes, which could include discussions on further tightening measures. Some members suggested that additional rate hikes might be needed even before April's inflation data was out. Despite disappointing PPI figures, April's inflation was positive. Nonetheless, the upcoming Fed minutes might worry investors as they might provide clues about future interest rate increases.

Geopolitical Risks

In a separate event, the Iranian President’s helicopter crash has sparked fears that it could be perceived as an assassination attempt, potentially heightening Iran-Israel tensions. Geopolitical risks have negatively impacted risk markets, including cryptocurrencies, in recent weeks.

Investor Caution

For crypto investors, prices falling below $65,500 could be dangerous, and all eyes will be on this key level in the coming hours. Bitcoin recently hit a low of $66,000 but hasn't plunged further yet. As of now, it has slightly rebounded to $66,320.

In conclusion, Bitcoin's recent surge is being tested by market uncertainties, Fed discussions, and geopolitical tensions. Investors remain cautious as they watch for further developments that could influence Bitcoin's direction.