Bitcoin's Uptrend Faces Pentagon-Backed Inflation Warning

As bitcoin appeared poised to break through the $80,000 barrier, macroeconomic uncertainty has reemerged as a significant obstacle. The Pentagon has warned U.S. lawmakers that clearing mines in the Strait of Hormuz could take at least six months, potentially keeping gasoline and oil prices elevated until the midterm elections. This could lead to persistently high energy costs, limiting the Federal Reserve's ability to cut interest rates and creating a challenging environment for risk assets like bitcoin. With rising costs for essentials potentially reducing investor appetite for speculative assets, market risks are on the rise. The increase in oil prices and government bond yields across major economies underscores the tightening financial conditions. Despite sustained demand for U.S.-listed spot bitcoin ETFs, some analysts caution that the rally lacks broad-based support, warning of potential correction risks if traders start taking profits while spot demand continues to contract.