Key facts
- Bitcoin fell to $62,600 amid renewed U.S.-Iran airstrikes and rising oil prices.
- The conflict has heightened concerns over shipping through the Strait of Hormuz.
- Brent crude futures rose significantly due to geopolitical tensions.
- Higher energy prices are seen as adding inflationary pressure, potentially leading to a Federal Reserve rate hike.
- Spot Bitcoin and Ether ETFs recently ended an eight-week outflow streak.
Bitcoin traded near $62,600, experiencing a decline amid renewed U.S.-Iran airstrikes that have reignited geopolitical risks and inflation concerns. President Trump reinstated a U.S. blockade of Iranian ships through the Strait of Hormuz, causing Brent crude oil prices to rise significantly. This surge in energy prices adds to inflationary pressures, potentially leading to a Federal Reserve rate hike, which runs counter to favorable conditions for cryptocurrencies. The broader CoinDesk 20 index also lost value, mirroring declines in European equities and U.S. index futures. Attacks on tankers have reduced traffic through the Strait of Hormuz, which carried about one-fifth of global oil and gas supplies before the conflict and has been de-facto closed for 136 days. Oil prices reached a four-week high after hostilities restarted. The move reverses part of the peace trade that helped bitcoin recover from its late-June lows. Higher oil prices raise near-term inflation risks, pushing up Treasury yields and reducing demand for rate-sensitive assets. Prediction markets assigned a 36% chance of a Federal Reserve interest-rate increase this month, pushing the two-year Treasury yield to 4.28%. June CPI is expected to show headline inflation slowing to 3.8% year-over-year, with core inflation holding at 2.9%. Despite current headwinds, spot Bitcoin and Ether ETFs recently broke an eight-week streak of outflows, suggesting renewed demand.