Bitcoin's Uptrend Faces Challenges as Pentagon Warns of Prolonged Inflation

As bitcoin appeared poised to break through the $80,000 threshold, uncertainty reemerged due to a warning from the Pentagon regarding potential inflation. The Pentagon briefed U.S. lawmakers, stating that clearing mines in the Strait of Hormuz could take at least six months and that gasoline and oil prices may remain high until after the U.S.-Iran conflict ends. This could lead to persistent inflation, limiting the Federal Reserve's ability to cut interest rates and negatively impacting risk assets like bitcoin. Rising energy costs could also reduce investor appetite for speculative assets. Markets are already reflecting these risks, with WTI crude prices climbing to $95 and government bond yields increasing. Despite sustained demand for U.S.-listed spot bitcoin ETFs, some analysts advise caution, citing a lack of broad-based support in the spot market. The recent price increase is driven by demand in the perpetual futures market, while spot demand contracts, raising the risk of a correction if traders take profits. The market capitalization of the largest dollar-pegged stablecoin, USDT, has reached a record high, and speculation in non-serious tokens is intensifying. The ratio of bitcoin's price to gold has been rising, with the potential for a bullish crossover, indicating a shift in momentum in favor of bitcoin.