Bitcoin's Uptrend Faces Inflation Warning from Pentagon

As bitcoin appeared poised to break through the $80,000 barrier, concerns over the broader economy resurfaced. The Pentagon warned lawmakers that clearing mines from the Strait of Hormuz could take at least six months, potentially keeping oil and gasoline prices high until the US-Iran conflict is resolved. This could lead to persistent inflation, limiting the Federal Reserve's ability to lower interest rates and creating a challenging environment for risk assets like bitcoin. Rising energy costs may also reduce investor appetite for speculative assets. Markets are already reflecting these risks, with crude oil prices and government bond yields increasing. Despite sustained demand for US-listed spot bitcoin ETFs, some analysts urge caution, citing the lack of broad-based support in the spot market and the potential for a correction if traders take profits. The market capitalization of the largest dollar-pegged stablecoin, USDT, has reached a record high, while speculation in other tokens is intensifying.