Crypto
Oil Price Surge Hits Bitcoin as US-Iran Tensions Escalate
Bitcoin's price took a hit on Thursday due to renewed tensions in the Middle East. The price of oil surged past $105 a barrel after Iran signaled it would not back down from US forces, leading to increased attacks between the two nations.
The latest round of fighting between the US and Iran, which began in February, has driven up oil prices and made interest rate cuts less likely due to inflation concerns. Bitcoin typically performs well in low-interest-rate environments but tends to sell off when central banks become more hawkish.
As a result, traders are pricing in an interest rate hike next week when the Federal Reserve meets. This would be a departure from previous statements that hinted at potential cuts.