Bitcoin falls to $62,000 as US-Iran tensions push oil

Bitcoin faced renewed selling pressure on Wednesday, July 8, as escalating geopolitical tensions between the United States and Iran drove a sharp increase in oil prices and shifted broader market sentiment away from risk. The cryptocurrency fell roughly 3.5% on the day, trading near $62,000 and testing a crucial support level as traders recalibrated expectations for interest rates and monitored specific pressures within the crypto market.

The immediate catalyst was the collapse of a ceasefire between the U.S. and Iran, with President Donald Trump stating the deal was "over" during a press conference at the NATO summit in Ankara, Turkey. Reports indicated both nations were considering reimposing a blockade of the Strait of Hormuz, a vital global oil transit route. This development sent Brent crude oil prices sharply higher, with West Texas Intermediate crude surpassing $75 per barrel, its highest level in weeks.

Higher energy prices quickly translated into concerns about persistent inflation, which in turn reduced market expectations for near-term interest rate cuts from the U.S. Federal Reserve. Data from the CME FedWatch Tool showed traders had significantly increased the odds...