Bitcoin Holds Firm Against $96 Oil as ETFs Absorb $905M

Bitcoin has shown unusual resilience in the face of escalating tensions between the US and Iran, holding steady at just under $80,000 despite oil prices climbing above $96 per barrel. This reaction is notable because earlier conflicts between the two nations sent Bitcoin sharply lower as traders reacted to rising energy prices and Treasury yields.

However, this time around, Bitcoin has another force working in its favor: institutional ETF demand. US spot Bitcoin ETFs attracted a massive $905 million in just two trading sessions, with BlackRock's IBIT accounting for $571.4 million of that total.

The contrast between the current situation and earlier conflicts is becoming increasingly stark. The Iran oil war could still have a significant impact on Bitcoin through its indirect effects on the Federal Reserve's monetary policy decisions. With the probability of a September Fed hike already at 59% following Friday's strong US employment report, Bitcoin faces another major test.

Friday's jobs report added 162,000 new jobs in August, significantly exceeding expectations and pushing up the likelihood of a September rate hike by the Federal Reserve. The US Producer Price Index is due out on Sept. 10, followed by the more important August CPI report on Sept. 11.