Bitcoin's Advance Faces Inflation Warning from Pentagon

Bitcoin's momentum towards breaking the $80,000 barrier has been hindered by renewed macroeconomic uncertainty. A classified briefing by the Pentagon to U.S. lawmakers highlighted that clearing mines in the Strait of Hormuz could take at least six months, potentially keeping oil and gasoline prices elevated through the midterm elections. This warning, as reported by the Washington Post, suggests that persistently high energy costs could lead to sticky inflation, limiting the Federal Reserve's ability to cut interest rates. As bitcoin is highly sensitive to interest rates and global liquidity, rising costs for essentials could reduce investor appetite for speculative assets. Market risks are already on the rise, with WTI crude climbing to around $95 and government bond yields increasing across major economies. The U.S. 10-year yield has risen by eight basis points to 4.32%, while its U.K. counterpart has increased by 18 basis points to 4.96%. Analysts caution that the current rally lacks broad-based support in the spot market, with some warning of a potential correction if traders take profits while spot demand continues to contract. Meanwhile, the market capitalization of USDT, the largest dollar-pegged stablecoin, has reached a record high of $188.88 billion, and speculation in non-serious tokens is on the rise. The ratio of bitcoin's price to gold has been steadily rising, with the 50-day moving average potentially crossing above the 100-day average, indicating a bullish shift in momentum.