Bitcoin fell more than 1% from 00:00 UTC on July 13 and briefly pulled back to around $63,000 after weekend airstrikes between the U.S. and Iran pushed investors toward safer assets, according to BlockBeats. At the same time, Brent crude futures rose more than 3% to near $79 a barrel, as traders weighed the risk that disruption to shipping through the Strait of Hormuz could lift energy prices and inflation.
That combination could reduce room for Federal Reserve rate cuts and add pressure to risk assets including cryptocurrencies. Taran Dhillon, head of digital assets at Kula, said the crypto market this week will face a tug-of-war between macroeconomic data and geopolitical developments in the Middle East, with upcoming U.S. CPI and PPI releases likely to shape expectations for the Fed’s rate path. Even so, spot Bitcoin ETFs and spot Ethereum ETFs have ended an eight-week stretch of net outflows, a sign that institutional demand has improved. The continued progress of the CLARITY Act is also seen as supportive for digital-asset regulatory expectations.
Bitcoin fell more than 1% from 00:00 UTC on July 13 and at one point dropped back to around $63,000, after weekend airstrikes between the U.S. and Iran drove a move toward safer assets, according to BlockBeats.
Brent crude futures climbed more than 3% and approached $79 a barrel. The market is watching the possibility that shipping disruptions in the Strait of Hormuz could push up energy prices and inflation. That, in turn, could narrow the Federal Reserve’s room to cut rates and weigh on risk assets such as cryptocurrencies.
Taran Dhillon, head of digital assets at Kula, said the crypto market this week will be caught in a tug-of-war between macro data and geopolitical tensions in the Middle East. He said upcoming U.S. CPI and PPI data will shape expectations for the Fed’s interest-rate path.
At the same time, spot Bitcoin ETFs and spot Ethereum ETFs have ended an eight-week run of net outflows, pointing to a pickup in institutional demand. Continued progress on the CLARITY Act could also improve expectations around digital-asset regulation and offer support to the market.
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