Key facts
- US forces struck IRGC missile launchers on Larak Island.
- Iran retaliated by launching ballistic missiles at US bases.
- Brent crude oil futures rose over 2% to above $90 per barrel.
- WTI crude oil prices increased over 2% to above $85.50.
- Bitcoin's price dropped to a low of $77,161.
- Bitcoin futures open interest increased.
Bitcoin saw its gains diminish, slipping toward $77,000, as Iran retaliated against US strikes on Larak Island. Oil prices jumped more than 2%, with Brent crude futures trading above $90 per barrel and WTI crude oil prices above $85.50, amid the escalating US-Iran conflict.
US forces conducted precise actions against Iranian Revolutionary Guard Corps (IRGC) minelaying forces in the Strait of Hormuz, which Iran falsely claimed was an act of aggression. In response, Iran launched multiple ballistic missiles targeting US bases across the Middle East, though significant impacts have not been reported and most missiles were intercepted.
The renewed geopolitical jitters have caused apprehension among traders. Bitcoin's price fell from over $80,000 after Fed Chair Kevin Warsh indicated that inflation remains high. The 10-year US Treasury yield moved around 4.7%, and the US dollar index climbed to approximately 99.6, reflecting concerns over potential Fed rate hikes.
Despite the price dip, the derivatives market shows increased buying activity. Bitcoin futures open interest has risen, with notable increases on CME, Binance, and Hyperliquid. Market participants on Polymarket anticipate Bitcoin reaching $85,000 by December 31, 2026, with 68% of bets supporting this outcome.