Bitcoin price drops as US‑Iran fighting heats up
Bitcoin price drops as US‑Iran fighting heats up
Bitcoin fell more than 2% on Thursday, trading around $77,200 after oil prices rose above $105 a barrel. The price move followed renewed fighting between the United States and Iran in the Middle East.
Key numbers
- Bitcoin price: $77,208 (low $76,748)
- Oil price: over $105 per barrel
- Bitcoin down >2% in the past day
Details from Bitcoin Magazine
The drop came after Iran said it would not back down against U.S. forces. Earlier that week, the two sides escalated attacks, and Tehran‑backed Houthis in Yemen struck Saudi Arabian assets, further lifting oil prices.
Higher oil prices can keep the Federal Reserve from cutting interest rates because they add to inflation. The Fed’s chair, Kevin Warsh, said inflation has not fallen enough, and traders are pricing in a possible rate hike at the next Fed meeting.
In August, the U.S. Treasury announced a larger liquidity‑support buyback program, which helped the dollar and boosted non‑yielding assets such as Bitcoin and gold. This year Bitcoin has moved more in line with gold as investors look to hedge against a weakening dollar.
Why it matters
Rising oil prices and the risk of higher U.S. interest rates can affect crypto markets. Bitcoin often performs better when interest rates are low, so a potential rate hike may put pressure on its price. At the same time, investors may turn to Bitcoin and gold as a hedge against a declining dollar.
