Bitcoin's Uptrend Faces Obstacles Amid Inflation Concerns Backed by Pentagon

As bitcoin seemed to be gaining momentum to break through the $80,000 threshold, macroeconomic uncertainty resurfaced. The Pentagon warned U.S. lawmakers that clearing mines from the Strait of Hormuz, a crucial oil passage, could take at least six months and would only begin after the U.S.-Iran conflict ends, potentially keeping gasoline and oil prices high through the midterm elections. This could lead to sticky inflation, limiting the Federal Reserve's ability to cut interest rates, which is unfavorable for risk assets like bitcoin. Rising essential costs could also deter investors from allocating capital to speculative assets. WTI crude prices have increased to around $95 from $79, and government bond yields are rising. Despite sustained demand in U.S.-listed spot bitcoin ETFs, some analysts urge caution, citing the rally's lack of broad-based support in the spot market. The market capitalization of USDT has reached a record high, and speculation in certain tokens is intensifying. A bullish crossover in the ratio of bitcoin's price to gold could signal continued outperformance of bitcoin relative to gold.