Iran war developments have caused a surge in oil prices, BTC is holding firm.
Bitcoins move above $66,000 comes hot on the heels of softer inflation data, higher ETF demand, and geopolitical conditions.
Why Is Crude Oil Price Rising？
Brent crude futures now stand at $91.58, the highest since early June. The situation was exacerbated yesterday by Houthi militants allied with Iran announcing a maritime embargo against Saudi Arabia, threatening Red Sea oil exports which have played a key role in oil supply following the closure of the Strait of Hormuz.
What It Means for Bitcoin
Higher crude oil leads the market to expect increased inflation, limiting how much the Federal Reserve can cut interest rates. Elevated interest rates make cash and Treasuries more appealing, and can often have a bearish impact on BTC.
For now, however, BTC is rising alongside crude oil prices, with the latest developments in the war potentially already priced into the volatile crypto markets. BTC ranged between $63,100 and $65,666 earlier in the day and has now risen to $66,670, holding onto a 5-week high.
Spot ETF inflows hit $227 million on July 20, giving the bulls a comfortable base from which to build support.
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However, whether Bitcoin will continue to rise in this environment remains to be seen. If history is any indication, its likely that crude oil prices remaining above $90 for an extended period contribute to weaker sentiment in BTC.