Bitcoin's Uptrend Faces Inflation Warning from Pentagon

As bitcoin appeared poised to break through the $80,000 threshold, macroeconomic uncertainty resurfaced as a challenge. The Pentagon warned U.S. lawmakers in a classified briefing that clearing mines in the Strait of Hormuz could take at least six months, with the process only beginning after the U.S.-Iran conflict ends. This warning, combined with the potential for sustained high energy costs, may keep inflation elevated and limit the Federal Reserve's ability to cut interest rates, which could negatively impact risk assets like bitcoin. With rising costs for essentials potentially reducing investor appetite for speculative assets, these risks are already manifesting in markets, as seen in the climb of WTI crude and rising government bond yields across major economies. 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 and the potential for a correction if traders begin taking profits amidst contracting spot demand.