Bitcoin Price Reclaims $64K Amid US-Iran Tensions and Rising Oil Prices
Bitcoin price has reclaimed the $64,000 mark after a mild correction in the previous session. Institutional demand is showing early signs of recovery, but uncertainty surrounding US-Iran peace talks and recovering crude oil prices continue to keep inflation concerns elevated.
The growing uncertainty over US-Iran peace talks has sparked an angry backlash from US President Donald Trump, who had cited the resumption of bilateral talks as justification for calling off attacks. Iran's Islamic Revolutionary Guard Corps (IRGC) has reportedly attacked a US military base in Kuwait with at least three drones.
Iran-backed Houthi rebels' naval blockade against Saudi Arabia is adding to the regional conflict, keeping the geopolitical risk premium in play and supporting crude oil prices. This has heightened concerns that rising energy prices could reignite inflationary pressures and push the Federal Reserve (Fed) toward a more hawkish stance.
According to the CME FedWatch Tool, market participants are currently pricing in a 64.7% probability of a Fed rate hike in September. The expectations were reinforced by Monday's US ISM Manufacturing PMI data release, which showed that manufacturing activity rose to its highest level in more than four years in July.
SoSoValue data show that spot BTC ETFs recorded an inflow of $170.09 million on Monday after net outflows of $61.53 million last week. However, the chart shows a sharp decline in crypto trading activity, pointing to weakening market liquidity.