Bitcoin Drops, Crypto Market Enters Caution Mode
Bitcoin weakened on Wednesday (July 8th) after global market sentiment deteriorated due to escalating tensions between the United States and Iran. Bitcoin's price is currently hovering around US$61,656, after hitting a daily high of US$64,151 and a low of US$61,510.
Pressure arose after US President Donald Trump stated that the interim memorandum of understanding with Iran to end the war was "over." This statement came after escalating attacks in the Gulf region and prompted investors to once again avoid risky assets, including crypto.
Tensions also pushed oil prices sharply higher as markets worried about supply disruptions through the Strait of Hormuz. The surge in energy prices has the potential to reignite inflation concerns, which could lead the Federal Reserve to maintain a tight interest rate policy for longer. This situation is typically less supportive of risky assets like Bitcoin.
However, the pressure on Bitcoin has not completely extinguished institutional interest. The US spot Bitcoin ETF previously recorded net inflows of around US$266 million on July 6th, with BlackRock IBIT being the largest contributor. This inflow indicates that some large investors still see accumulation opportunities amid the correction.
For other cryptocurrencies, Ethereum is around US$1,624.95, XRP at US$1.059, Solana at US$77.97, Cardano at US$0.1654, and Dogecoin at US$0.0718. Most altcoins remain under pressure as the market is reluctant to take significant risks until there is clarity from the Fed and the Middle East conflict.
Looking ahead, the market's focus is on the minutes of the June FOMC meeting. If the Fed sounds hawkish, Bitcoin risks retesting the US$60,000 or even US$58,000 area. However, if the minutes show a more cautious stance on interest rate hikes, Bitcoin has the potential to rebound to the US$63,000–US$64,500 area (arl)
Source: Newsmaker.id
