Bitcoin Stalls at $77k Amid M.East Tensions and Rate Hike Jitters
Bitcoin (BTC) held steady at $77,760.7 on Monday amid escalating tensions in the Middle East and jitters over a potential interest rate hike by the Federal Reserve later this week.
The world's largest cryptocurrency rose just 0.8% after losing around 3% last week, as markets digested worsening clashes between the US and Iran, as well as other regional players.
The renewed surge in oil prices due to the conflict is likely to further underpin energy-driven inflation, which could invite higher global interest rates, a trend that bodes poorly for Bitcoin and speculative markets.
Markets are increasingly pricing in bets on a near-term rate hike by the Fed, with several policymakers having flagged concerns over sticky inflation. Robust inflation prints for August have added to these bets.
The focus is also squarely on whether US Congress will proceed with a vote on the Clarity Act, which has long been delayed and remains unclear in its provisions for stablecoin yields and regulatory standards.