Bitcoin Stuck in Inflation Headwind Ahead of US Jobs Report

Bitcoin traded at around $64,350 on Friday, remaining unchanged for the week as investors awaited the US jobs report. The broader market was also in a holding pattern, with most major cryptocurrencies hovering within a point or two of their previous levels.

The situation took a slight turn against Bitcoin overnight when Brent crude oil prices rose by 1.4% to $83.61 due to reports that Iran would restrict US and Israeli ships through the Strait of Hormuz and demand compensation from hostile countries. This development revived concerns about inflation, which in turn pushed up the 10-year Treasury yield by seven basis points during the US trading session.

The macroeconomic backdrop has been a major challenge for Bitcoin this summer, with higher oil prices feeding into inflation worries that keep the Federal Reserve leaning towards tighter monetary policy. A strong dollar and firm financial conditions have also capped risk assets, including cryptocurrencies.