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Bitcoin trades near $62,600 as CPI focus returns
U.S. inflation data is due Tuesday, with markets pricing a 40% chance of a rate hike, a setup that could be pressured further by renewed Strait of Hormuz shipping risks.
Bitcoin was trading near $62,600 on Tuesday, down 0.3% over 24 hours and roughly flat for the week, according to CoinDesk data, as traders weighed a shifting macro backdrop for risk assets.
CoinDesk said President Trump reinstated the U.S. blockade of Iranian ships through the Strait of Hormuz and demanded a 20% fee on other cargo moving through the waterway. The renewed conflict lifted Brent crude as much as 2.8% to around $85 a barrel for a second straight day.
The oil move is feeding back into rate expectations that had helped support bitcoin earlier in July, CoinDesk noted. The outlet cited the CME FedWatch Tool showing markets pricing about a 40% chance of a U.S. rate hike, while the 10-year Treasury yield stayed above 4.6%.
Bitcoin is also facing an immediate test from Tuesday's U.S. CPI print, with headline inflation expected to slow to 3.8% year over year from 4.2%, and core inflation expected to remain steady at 2.9% annually. CoinDesk said a hotter inflation result, especially with oil rising, could add to hawkish signals ahead of the Fed meeting on July 28 and 29.
Latest closeWTI crude $78.04 ▲9.3%|Brent $83.15 ▲9.4%|Bitcoin $62,239.12 ▼2.4%