Crypto steadies as Middle East tensions counter U.S. inflation report boost
Bitcoin and Ether experienced a slight pullback after reaching multi-week highs, as geopolitical tensions in the Strait of Hormuz offset positive momentum from cooling U.S. inflation data. While major cryptocurrencies consolidated, select altcoins like Hyperliquid and Zcash saw significant gains, reflecting a mixed performance across the broader digital asset market.
Why it matters
The market's sensitivity to both macroeconomic indicators and geopolitical instability highlights the increasing correlation between crypto assets and traditional global risk factors.
Bitcoin, while more than 3% higher over 24 hours, fell 0.6% since midnight UTC as tensions between Iran and the U.S. over tanker movements in the Strait of Hormuz ramped up. The largest cryptocurrency earlier touched a three-week high of $65,200.
Ether marked a similar trajectory, remaining 5% higher over 24 hours even after dropping 0.8% since midnight. It touched $1,895, the highest level since June 3, on Tuesday.
U.S. equities also rose in the period, with Nasdaq 100 futures and S&P 500 futures posting respective gains of 0.53% and 0.22%.
The altcoin market also showed pockets of strength; PUMP rose by 8.5% since midnight after a team and investor unlock was mopped up by investors, suggesting robust demand.
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