Bitcoin’s price fell to $64,799 on July 23, marking its lowest point in three days. This drop came as geopolitical tensions reignited after US President Donald Trump threatened a "massive attack" on Iran. The threat followed attacks by Iran-backed Houthi rebels on Saudi oil tankers, pushing Brent crude above $100 per barrel and stirring inflation concerns.
Geopolitical Strain Hits Markets
Trump’s announcement on Truth Social emphasized a potential strike "way bigger than Operation Epic Fury," escalating fears across global markets. Despite the strong rhetoric, the White House clarified that no final military decision or orders have been issued. Meanwhile, Trump underscored Israel’s readiness to join but insisted the US could operate alone. The surge in Brent crude oil, reaching levels not seen since early June, fueled worries about rising inflation in the US and added pressure on risk assets.
This development follows a broader pattern of instability in the region, echoing recent events like US missile and drone strikes in Iranian provinces and Iran’s strikes on US military bases in the Gulf. Such escalations continue to unsettle both traditional and crypto markets.
Inflation Fears Boost Fed Rate Hike Odds
The jump in oil prices directly influenced expectations for US monetary policy. The CME Group’s FedWatch Tool showed the probability of a 0.25% rate hike in July increasing from 12% to nearly 40% in just one week. This sharp shift reflects worries that higher energy costs will exacerbate inflationary pressures. US 10-year Treasury yields climbed to an 18-month high, signaling fresh economic strain, while stock indices suffered losses: the S&P 500 dropped 1.2%, and the Nasdaq fell 2.2% during the same session.
Mixed Outlook for Bitcoin’s Next Move
Market analysts remain divided on Bitcoin's path. Michaël van de Poppe pointed to the 21-day moving average at around $64,073 as a critical support level. Holding above it could pave the way toward $73,000, though the $68,000 resistance remains a significant hurdle. Another trader, Jelle, noted that breaking local resistance might set the stage for a rise to $70,000. Yet more cautious voices like Exitpump warn that the July rally is still unfolding and not guaranteed.
Bitcoin’s price action is closely tied to broader economic and geopolitical currents, with current events keeping traders on edge.
This material is for informational purposes and does not constitute financial advice.
