FX.co ★ Bitcoin Declines

Bitcoin retreated toward $62,000 in mid-July, surrendering part of its earlier-month rebound as escalating tensions between the United States and Iran undermined risk appetite. The two countries exchanged strikes over the weekend, driving Brent crude above $79 per barrel and stoking fears of potential supply disruptions through the Strait of Hormuz, which in turn reignited inflation concerns. At the same time, investors remained wary ahead of this week’s US consumer inflation report and testimony from Federal Reserve Chair Kevin Warsh, amid worries that a stronger-than-expected CPI reading could reinforce expectations for additional Fed tightening. The pullback in Bitcoin was partly cushioned by institutional demand, however, as US-listed spot Bitcoin ETFs registered net inflows of $197.4 million last week, snapping a nine-week streak of outflows.