Bitcoin Plunges to Three-Day Low Amid Geopolitical Tensions
Bitcoin (BTC) suffered a decline on Thursday, July 23, falling to a three-day low of $64,799 as geopolitical tensions between the US and Iran escalated.
The selloff was triggered by comments from US President Donald Trump, who threatened a 'massive attack' on Iran following Houthi strikes on Saudi oil tankers in the Red Sea.
Brent crude oil prices surged above $100 per barrel, its highest level since early June, fueling inflation concerns that are feeding into interest rate expectations.
According to CME Group's FedWatch Tool, odds of a 0.25% Fed rate hike at the July meeting jumped from around 12% to nearly 40% in just one week, further raising fears about rising US inflation.
Analysts are split on what comes next for Bitcoin, with some targeting $73,000 and others calling for shorts below $65,000.