S. â again â and it's hurting bitcoin's price. S.
and Iran. The largest cryptocurrency had initially shrugged off President Donald Trumpâs threats to the Middle Eastern nation, as well as the first strikes. But things heated up on Tuesday, and bitcoinâs price slid.
It was recently down more than 2% on the day, trading for $77,363. The coin had pushed past as high as nearly $81,282 on Friday. S.
were because Iran tried to put mines in the Strait of Hormuz, and also because of an attack on an American military base in Jordan, according to President Trump. S. Central Command said on X that Iran had also attacked commercial ships.
m. S. forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran.
The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region. âThe strikes follow recent attempted attacks by the Islamic Revolutionary Guard Corps against commercial shipping in the Strait of Hormuz and against American service members deployed to the region,â the post read. S.
military bases, according to Iranian media. Oil surged on the news. Bitcoinâs price has been sensitive to geopolitical tensions this year â especially after Iran and Israel attacked Iran.
The cryptocurrency has typically faced downward pressure on news of war, only to then rally when Trump raised hopes of a ceasefire. Despite Bitcoinâs price being relatively muted, in recent months, it has made more wild swings since mid-August. S.
central bank will postpone rate cuts, which can restrict the liquidity that bitcoin needs to gain momentum. The Federal Reserveâs chair, Kevin Warsh, last week gave his first major speech as leader of the central bank and said that inflation in the worldâs largest economy had not come down enough. Traders are now no longer pricing in an interest rate cut this year, instead expecting a hike.
Bitcoin has typically performed well in the past in low interest rate environments. S. Treasury said it would at least double the size of its liquidity-support buyback operations, in response to surging borrowing costs.
The announcement hurt the dollar but non-yielding assets like bitcoin and gold have benefited.
