Bitcoin Holds Steady Amid Strait of Hormuz Tensions
Bitcoin's price held steady near US$77,580 as global markets reacted to the escalating tensions between the US and Iran. The Strait of Hormuz incident saw oil prices surge, with WTI crude rising nearly 2% to US$85.10 and Brent gaining 1.9% to US$92.39.
MUFG FX strategist Lloyd Chan noted that markets now assign a 58% probability of a September hike and price roughly 1.5 hikes by year-end. Despite the uncertainty, Bitcoin's August performance has been strong, with a 23% gain compared to 9% for gold and 4% for the Nasdaq.
The US attack on an Iranian island triggered retaliatory action from Iran, affecting markets around the Strait of Hormuz. Bitcoin remained largely unchanged since midnight UTC, while XRP fell 0.8% and Solana declined 0.6%. Strong spot ETF inflows contributed to Bitcoin's August performance.