Bitcoin dropped below $64,000 as oil prices jumped past $85 a barrel amid escalating US-Iran tensions. The pressure follows a report that the US and Israel are weighing a land blockade on Iran after military action failed to force Iran to negotiate. A stronger dollar added to the selling pressure on Bitcoin.
Bitcoin slipped below $64,000 on Friday, falling more than 1% in a few hours as oil prices spiked. The selloff followed a report that the US and Israel are discussing a land blockade on Iran to intensify economic pressure after military action failed to force Iran to negotiate.
The Telegraph reported on July 31 that the proposal would push neighboring countries — Iraq, Pakistan, Turkey, Turkmenistan, Afghanistan, Armenia and Azerbaijan — to restrict or close border crossings, limiting Iran's imports and exports. It follows discussions between President Trump and Israeli Prime Minister Benjamin Netanyahu on military and non-military options alongside a naval blockade.
Iran struck two oil tankers attempting to cross the Strait of Hormuz. According to the IRGC: "the targeted tankers did not respond to Iranian warnings."
Oil prices surged above $85 a barrel again as the conflict escalated.
Inflation concerns are rising despite US PCE inflation cooling to 3.7%. The US dollar index climbed back to 100.34, causing selling pressure on Bitcoin. The 10-year Treasury yield rebounded to 4.684%, near an 18-month high.
Bitcoin fell 2% over the past 24 hours to $63,677, trading between a 24-hour low of $63,549 and a high of $65,328. Trading volume dropped 15% amid Bitcoin options expiry, indicating traders remain cautious. Total Bitcoin futures open interest fell 3% to $47.66 billion over the same period.
Source: CoinGape
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