Bitcoin Wavers, Investors Avoid Risk
Bitcoin weakened to around US$64,940 in trading on Friday (July 24). The world's largest cryptocurrency briefly touched a daily high of US$65,750 before dropping to around US$64,636.
Bitcoin's decline occurred as investors reduced their appetite for riskier assets due to the escalating conflict between the United States and Iran. Houthi attacks on Saudi tankers in the Red Sea also heightened concerns about the security of energy shipping routes.
Brent oil prices briefly broke US$100 per barrel after surging 7% in the previous session. Although it later corrected below US$100, Brent is still heading for a weekly gain of around 12% due to the risk of supply disruptions in the Red Sea and the Strait of Hormuz.
Rising energy prices have fueled concerns that global inflationary pressures could rise again. This could force the Federal Reserve to maintain tight monetary policy for longer, thus limiting investor interest in speculative assets like Bitcoin.
Market sentiment was also dampened after the United States imposed new tariffs of 10% to 12.5% on imports from 60 trading partners. This policy has heightened concerns about trade wars and a global economic slowdown.
Ethereum also moved lower, trading around US$1,624.95. As long as geopolitical tensions, oil prices, and inflation concerns remain high, Bitcoin has the potential to remain volatile and face pressure around the US$65,000 area. (arl)
Source: Newsmaker.id
