Bitcoin Slips as Oil Rises and Inflation Fears Mount

Bitcoin fell during Asian trading today, weighed down by rising oil prices following new U.S. strikes on Iran, which revived concerns about a return of inflationary pressures and the possibility of tighter U.S. monetary policy, Bloomberg reported.

The largest cryptocurrency dropped as much as 2.4% to $62,600, slipping below its 200-week moving average—a technical level some analysts view as an indicator of a continued downtrend. Ethereum also declined by approximately 2.5%.

Richard Galvin, chairman of the board at DACM, a digital asset investment firm, said the sell-off coincided with a decline in U.S. stock futures and higher oil prices amid escalating tensions between the United States and Iran.

Analysts believe that any inflation reading above expectations could bolster forecasts of interest rate hikes before the end of the year, potentially increasing pressure on cryptocurrencies, while a moderate or below-expected reading could support expectations of easing inflationary pressures.