Crypto Assets Weaken, Global Risks Increase
Bitcoin weakened again on Friday (July 17th), as pressure on risk assets stemmed from escalating US-Iran tensions and market concerns about the direction of the Fed's interest rates. Currently, Bitcoin is trading around US$63,041, with intraday levels ranging from US$62,636 to US$64,775.
The pressure on Bitcoin comes as the conflict in the Middle East re-escalates. Oil prices have also risen due to the US-Iran escalation and the threat of energy supply disruptions, with Brent hovering around US$84.30 per barrel and WTI around US$79.11. This oil surge has renewed market concerns about the risk of energy inflation.
From a macro perspective, tamer US inflation has indeed reduced expectations of an imminent interest rate hike. However, inflation remains above the Fed's target, so the market still sees the possibility of at least one rate hike by the end of the year. This puts pressure on speculative assets like crypto.
Bitcoin has also yet to receive a strong boost from institutional sentiment. SoSoValue data shows that spot Bitcoin ETF flows remain a market concern, as the movement of funds in and out of ETFs reflects the interest of large investors in crypto assets.
Pressure is also visible in other crypto assets. Ethereum is hovering around US$1,624.95, while XRP is trading around US$1.059, Solana around US$77.97, Cardano around US$0.1609, BNB around US$563.85, and Dogecoin around US$0.0717.
As a result, Bitcoin remains vulnerable as long as oil prices are high, the US-Iran conflict remains unresolved, and the Fed maintains a cautious stance on inflation. As long as BTC remains unable to hold firmly above the US$64,000–US$65,000 area, further pressure remains, with the US$62,000 area a key psychological level to watch. (arl)
Source: Newsmaker.id
