Bitcoin Consolidates Near $78,000 Amid Geopolitical Tensions and Rising Oil Prices
Bitcoin's price has been consolidating after its recent rally, trading near $78,000 on Monday. Despite strong institutional demand, geopolitical tensions and rising oil prices are dampening risk appetite.
Institutional demand for Bitcoin remains robust, with spot ETFs recording a net weekly inflow of $924.48 million last week. This could support gains ahead if these inflows continue and intensify.
However, escalating Middle East tensions, including US forces striking Iranian launchers and Iran retaliating with ballistic missiles, are heightening uncertainty surrounding the Strait of Hormuz. This is keeping the war-risk premium elevated and supporting the US Dollar.
The rise in oil prices has fueled expectations that the Federal Reserve could maintain a tighter monetary policy stance. The bank's funds futures indicate just over a 61.9% probability of a rate hike in September, potentially supporting USD bulls and limiting upside in risk assets like Bitcoin.