Bitcoin rebounds to $63,400 as UAE-linked reports on Iranian funds emerge

Market responds to claims of asset transfers

According to several sources on X, including The Hormuz Letter, UAE banks released several billion dollars previously frozen under international restrictions. These reports said the transaction included around 1.5 tonnes of gold, valued between $200 million and $283 million. Observers tied this transfer to speculation that Iran gave assurances not to target the UAE in future conflicts.

The reports suggested that UAE Royal Jet, the Abu Dhabi-based private charter company, operated flights on August 11 and 12 using a Boeing 737-7KK, transporting assets from Abu Dhabi to Iran. The aircraft stopped at Tehran’s Mehrabad Airport and Payam Airport in Karaj, before returning to the UAE. Sources interpreted these flights as part of a larger transfer of previously frozen Iranian funds.

Earlier in the year, other reports connected the UAE to the possible release of Iranian assets valued between $10 billion and $20 billion, with claims that more than $3 billion had already been delivered. However, the UAE Foreign Ministry officially denied such asset releases, and US officials also rejected suggestions of a side agreement with Iran.

Mini dictionary: UAE Royal Jet: A private airline owned by the government of Abu Dhabi, specializing in luxury and state-charter flights, frequently used by officials and for sensitive cargo.

Oil and risk assets react to global developments

Oil prices dropped toward $81 per barrel as markets watched diplomatic efforts to reopen the Strait of Hormuz, a vital channel for global energy transport. The easing of energy prices provided some relief for risk assets, including Bitcoin, which gained about 1% following the oil decline.

West Texas Intermediate had previously climbed more than 5% earlier in the week, briefly fueling inflation concerns that pressured Bitcoin, which fell roughly 2% during that period. However, falling oil prices helped temper inflationary fears and encouraged renewed interest in digital assets.

Traders also focused on the latest US inflation figures. The July Consumer Price Index grew 3.4% year over year, down from 3.5% previously. Core CPI rose 0.2% month over month and 2.5% annually. The data offered additional short-term support for risk assets like Bitcoin.

Reports indicated that asset transfers from the UAE included significant gold reserves and cash deliveries to Iran, fueling speculation about regional diplomacy and the knock-on effects on risk markets.

Technical outlook for Bitcoin remains cautious

Despite Thursday’s rebound, Bitcoin has shown weak momentum after a series of losses earlier in the week. The cryptocurrency traded near $63,400, following four straight daily declines, coinciding with a drop in oil prices and softer US inflation data.

Several technical indicators are now in focus. Bitcoin’s 50-day exponential moving average (EMA) sits near $64,542 and serves as the first major resistance. The 100-day EMA is located around $66,667, close to horizontal resistance near $66,500.

Downside support is seen at $62,300. A break below this level could push Bitcoin toward its yearly low at $57,800, last reached on July 1. The daily Relative Strength Index (RSI) is near 48, while the Moving Average Convergence Divergence (MACD) histogram remains slightly negative, signaling weak underlying momentum as Bitcoin tests critical resistance levels.

Daily trading indicators show a cautious market as Bitcoin tests resistance at the 50-day and 100-day EMAs, while momentum remains muted.