Bitcoin Under Pressure from Risk-Off, Markets Monitor Iran and Fed Interest Rate Direction
Bitcoin traded within a range of around US$62,273, after hitting an intraday low of US$60,803 and a high of US$62,734. This movement indicates the crypto market remains fragile, although selling pressure is not as aggressive as in previous weeks. Ethereum also hovered around US$1,649, with an intraday range of US$1,609–US$1,663.
The main pressure came from worsening global risk sentiment following the resurgence of US-Iran tensions. Investors tend to reduce exposure to risky assets, including crypto, when markets face the risk of conflict that could disrupt energy supplies and prolong geopolitical uncertainty. In such conditions, the US dollar and safe-haven assets are typically more desirable than Bitcoin.
Rising oil prices following the escalation in the Middle East are also a significant factor. If energy prices rise for a prolonged period, inflation risks remaining high. As a result, the Fed's room to ease policy is increasingly limited, while the possibility of interest rates remaining high for longer or even rising again could weigh on non-yielding and high-beta assets like Bitcoin.
US CPI data for May showed annual inflation rising to 4.2%, in line with market expectations, while core CPI stood at 2.9%. The headline figure, still well above the Fed's target, maintains strong expectations of a rate pause for the June meeting, but is not enough to eliminate the risk of further tightening if energy pressures persist.
On the capital inflows side, pressure from spot Bitcoin ETFs is starting to ease, but has not yet transformed into a strong positive catalyst. SoSoValue data shows that US spot Bitcoin ETFs are still recording outflows, after the crypto market was previously weighed down by large outflows in recent weeks. As long as institutional capital flows remain stable, Bitcoin's rebound is likely to be easily contained.
Altcoins have also yet to show a solid recovery. Ethereum remains weak below US$1,700, while assets like XRP, Solana, Cardano, and Dogecoin remain sensitive to Bitcoin's direction and global risk sentiment. For now, the crypto market remains in a defensive phase: geopolitical pressures, oil prices, Fed expectations, and ETF flows are key variables to monitor. (Arl)
Source: Newsmaker.id
