Bitcoin Steadies Amid Middle East Tensions and Rate Hike Fears
Bitcoin remained steady on Monday at $77,760.7 after losing 3% last week, as markets digested worsening Middle East tensions and rising expectations of a Federal Reserve interest rate hike.
The world's largest cryptocurrency rose 0.8% amid caution over the potential impact of oil price increases due to the ongoing conflict in the region.
Yemen's Iran-aligned Houthis attacked Saudi Arabia, further limiting oil supplies, which has led to concerns over energy-driven inflation and higher global interest rates that could negatively affect Bitcoin and speculative markets.
The Federal Reserve is expected to hike interest rates this week, with several policymakers flagging concerns over sticky inflation. Robust August inflation prints have added to bets on a near-term rate increase.
In the crypto space, attention is focused on a potential vote on the Clarity Act in Congress, which could provide clarity on regulatory uncertainty for the sector.