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Bitcoin slips as oil surge and risk-off sentiment hit $60K support
Bitcoin fell 3.5% on Wednesday, as Brent crude jumped and traders increased bets on Fed rate hikes by September to 69%.
Bitcoin faced renewed sell pressure after a jump in oil prices and broader risk-off moves across markets, leaving the cryptocurrency unable to hold or reclaim key levels. Cointelegraph reports that BTC traded down 3.5% on Wednesday and struggled to bounce back after losing momentum around the $62,000 area, with traders now focused on whether it can stay above $60,000 support.
The sell pressure was linked to escalating developments around the US-Iran war that pushed Brent crude higher, lifting inflation concerns. Cointelegraph notes Brent rose to $74 from $68 the prior week, and describes how the breakdown of the US-Iran memorandum of understanding followed US strikes on Iranian sites.
Higher energy costs were also cited as a factor reducing expectations for near-term Federal Reserve rate cuts and tightening overall stimulus odds. According to Cointelegraph, traders are pricing 69% odds of interest rate hikes by September, up from 42% one month earlier, and this has weighed on risk assets including bitcoin.
Additional caution came from other macro pressure points, including stress in Japan’s bond market and renewed geopolitical and trade tensions. Cointelegraph says Japan government bond yields jumped to a 30-year high amid concerns about central bank independence, and it also highlights that trade frictions raised fears of slower global growth, with bitcoin still not widely seen as an effective hedge.
Latest closeWTI crude $81.23 ▼1.7%|Brent $85.92 ▼2.8%|Bitcoin $63,409.10 ▼0.7%