Bitcoin flat at $62.7k as markets gauge Iran tensions, rate fears

Bitcoin flat at $62.7k as markets gauge Iran tensions, rate fears

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com-- Bitcoin moved little on Tuesday, remaining pinned near annual lows as heightened U.S.-Iran tensions and concerns over rising inflation and interest rates kept markets largely averse towards speculative plays like cryptocurrencies. A sharp pick-up in capital outflows from spot Bitcoin exchange-traded funds also pressured the world’s largest crypto, with institutional selling in the sector showing few signs of slowing after two straight months of outflows. Bitcoin was flat at $62,778.5 by 01:19 ET (05:19 GMT).

Iran tensions, rate hike jitters pressure crypto Bitcoin moved little as risk appetite was quashed by continued military action between the U.S. and Iran, with the two countries also maintaining conflicting stances on the Strait of Hormuz. U.S. President Donald Trump said the waterway remained open and that the U.S. would use military force to facilitate shipping in the region. But Trump said the U.S. would also charge a 20% fee on cargo being moved through Hormuz.

His comments came as the U.S. carried out a third consecutive day of attacks on Iran, with Tehran retaliating by attacking ships in Hormuz and launching strikes at U.S. military bases across the Middle East. Oil prices rose sharply on the developments, keeping markets on edge over higher energy-driven inflation, which could in turn spur the Federal Reserve into hiking interest rates. Fed Governor Christopher Waller indicated that such a scenario was possible in the near-term.

His comments came just a day ahead of key U.S. consumer price index data for June, which is due later on Tuesday. Higher rates bode poorly for non-yielding, speculative assets like crypto. This notion has spurred continued selling in the sector, with spot Bitcoin ETFs experiencing sustained capital outflows.

Spot Bitcoin ETFs saw $424.7 million in outflows on Monday, after seeing outflows for eight of the nine prior weeks, data from SoSoValue showed. Strategy sells $466.7 mln in shares, buys no Bitcoin Top corporate holder Strategy Inc (NASDAQ:MSTR) disclosed on Monday it had raised about $466.7 million by selling its class A common stock between July 6 and July 12. The company also made no Bitcoin purchases during the period, and had last sold 2,225 coins at the beginning of July.

Strategy has become another pain point for Bitcoin, after the company began selling some of its holdings in June to meet mounting dividend and debt commitments. The company funded its Bitcoin purchases largely through sales of debt and preferred stock, and now faces dividend payments and debt repayment commitments. Investors have also questioned the long-term viability of Strategy’s Bitcoin hoarding, given that it requires Bitcoin’s price to keep rising to be viable.

Bitcoin is trading roughly 50% off a record high hit in October. Crypto price today: altcoins move little amid few crypto cues Broader crypto prices moved little on Tuesday amid few positive signals for the sector. World no.2 crypto Ether rose 0.5% to $1,791.11, while XRP fell 0.4% to $1.0717.

BNB rose 0.4%, while Cardano and Solana fell 0.4% and 1.3%, respectively. Among memecoins, Dogecoin was flat and $TRUMP fell 0.7%.