Bitcoin ETFs Resume Buying, But Price Slumps as Oil Surges on Iran Strikes

Bitcoin Price Drops Amid Oil Surge and Iran Strikes

Bitcoin's price fell to $77,200 on Monday, a decrease of 2.1%, as oil prices surged to three-month highs following President Trump's announcement of new US military strikes on Iran.

Key Market Developments

• Bitcoin ETFs, which are exchange-traded funds holding Bitcoin, recorded $217 million in inflows after a one-day outflow ended a nine-day buying streak.
• Ether ETFs have maintained net inflows for 11 consecutive days, with no outflows since mid-August.
• Oil prices jumped significantly: WTI crude rose above $90 per barrel, and Brent crude increased to $94.50 per barrel.
• Odds for a Federal Reserve interest rate hike in September increased to nearly 70% according to CME FedWatch data.

Trump's Announcement on Iran

On Truth Social, President Trump stated: "The United States is, as we speak, striking Iranian Targets near the Strait of Hormuz. The strikes are large and powerful, and in retaliation for the Iranians' failed attempt at adding sea mines to the Strait."

Official and Market Reactions

Treasury Secretary Scott Bessent commented that it would be a mistake for the Fed to raise rates to combat inflation from a supply shock. Market experts shared views: James Lavish noted the situation as "watching the death of fiat in a slow-motion train crash," while Peter Schiff argued higher Treasury yields might reduce rate hike likelihood.

Confirmed Facts from the Sources

The sources confirm Bitcoin ETF inflows of $217 million, the ether ETF inflow streak, oil price increases due to Iran strikes, and the rise in rate hike expectations. President Trump's announcement is verified.

Why This Matters for Investors

Higher oil prices can fuel inflation, which may lead the Federal Reserve to consider interest rate hikes. Rate changes can affect risk assets like cryptocurrencies, as seen in Bitcoin's price drop alongside the oil surge.

Fed Meeting Ahead

The Federal Reserve's policy meeting is scheduled in two weeks, where officials will decide on potential rate adjustments. Market attention is focused on this event.

Sources

• CoinDesk