Bitcoin's Upward Trend Encounters Inflation Warning Backed by the Pentagon

As bitcoin appeared to gain momentum to break through the $80,000 threshold, macroeconomic uncertainty resurfaced as an obstacle. The Pentagon informed U.S. lawmakers in a classified briefing that clearing mines in the Strait of Hormuz could take at least six months and will only commence after the U.S.-Iran conflict ends. This briefing also warned of potential elevated gasoline and oil prices through the midterm elections, according to the Washington Post. Persistent high energy costs may keep inflation high, limiting the Federal Reserve's ability to cut interest rates, which could negatively impact risk assets like bitcoin. Rising costs for essentials may reduce investors' willingness to invest in speculative assets. These risks are reflected in markets, with WTI crude climbing to around $95 and government bond yields rising. The U.S. 10-year yield increased to 4.32%, and the U.K. counterpart rose to 4.96%. Despite these challenges, U.S.-listed spot bitcoin ETFs continue to show sustained demand, with the fastest inflows in a month. However, some analysts urge caution, citing the rally's lack of broad-based support in the spot market. The market capitalization of USDT has hit a record high, and speculation in non-serious tokens is increasing, with overcrowding in bullish bets. The ratio between bitcoin's price and gold has been steadily rising, with the potential for a bullish crossover, indicating a bullish shift in momentum.