Bitcoin Slips on Monetary Policy Concerns

Bitcoin fell during Asian trading sessions today, weighed down by rising oil prices following new U.S. strikes on Iran, which revived concerns about renewed inflationary pressures and the prospect of tighter U.S. monetary policy, according to Bloomberg.

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

Richard Galvin, chairman of the board of 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 suggest that any inflation reading higher than expected could bolster expectations of interest rate hikes before the end of the year, potentially increasing pressure on cryptocurrencies, whereas a moderate or below-expected reading could support hopes of easing inflationary pressures.