Bitcoin Stuck at $77,000, High Oil Prices Curb Risk Appetite
Bitcoin held steady but remained below the $77,000 level on Tuesday after four consecutive sessions of declines, as investors monitored developments in the Iran conflict and its impact on inflation and US interest rate expectations. At 1:33 a.m. ET, Bitcoin edged down 0.1% to $76,818.9.
Risk-on sentiment remained fragile despite US President Donald Trump's announcement that a planned attack on Iran would be postponed while diplomacy continued. Uncertainty surrounding the Strait of Hormuz and the risk of oil supply disruptions kept market participants on the defensive, keeping oil prices above $100 per barrel.
Rising energy prices raised concerns that inflation could become more "sticky" and force central banks to maintain high interest rates for longer. US Treasury yields remained high, with the benchmark 10-year yield hovering around 4.44%, creating a drag on speculative assets like crypto as opportunity costs increased.
Amid the caution, altcoins saw limited movement. Ethereum rose 0.4% to US$2,125.60, XRP fell 0.7% to US$1.38, Solana fell 0.4%, Polygon fell 1%, and Cardano edged up 0.3%. Dogecoin weakened 1.6%.
Going forward, the direction of crypto remains highly dependent on movements in global risk sentiment. The market will monitor developments in Iran-Hormuz and the direction of oil prices, movements in Treasury yields, and whether spot ETF inflows are strong enough to withstand pressure from interest rate expectations. (arl)
Source: Newsmaker.id
