Bitcoin Threatens $60,000 Support as US-Iran War, Strategy Sales Add Pressure

Bitcoin is threatening support at $60,000. Downward pressure is building as an escalating US-Iran war lifts oil prices, Strategy sells Bitcoin, and India moves to tighten digital-asset regulation.

Cointelegraph reported on July 8 that Bitcoin fell 3.5% and failed to rebound from the $62,000 level. That contrasted with the Nasdaq, which recovered part of its losses, leaving Bitcoin relatively weaker.

The surge in oil prices has undermined hopes for interest-rate cuts. Brent crude jumped to $74 from $68 a week earlier after the US struck facilities tied to Iran's nuclear program and President Donald Trump formally scrapped a US-Iran memorandum of understanding. Higher energy costs are adding to inflation pressure and reducing the chances of Federal Reserve rate cuts. CME FedWatch showed the probability of a September rate increase rising to 69% from 42% a month earlier.

Strategy's Bitcoin sale also weakened market sentiment. The company disclosed that it sold $216 million of Bitcoin earlier in July. The sale was separate from a previously disclosed $1.25 billion monetization program, heightening concern among market participants. Strategy faces annual dividend payments of $1.76 billion and holds more than $3.8 billion of convertible bonds with call options exercisable before April 2027, raising fears that additional selling pressure may persist.

Global macro uncertainty has also intensified. Japan's 10-year government bond yield surged to its highest level in 30 years. The move came as the Japanese government showed signs of seeking changes to the Bank of Japan's policy target, fueling concern over central-bank independence. Japan is the largest foreign holder of US Treasuries, and instability in its bond market could ripple across global financial markets. Trade tensions also flared again after Trump called on Spain to cut trade ties at a NATO summit.

Regulatory risk has also come into focus. Internal documents showed the Reserve Bank of India strongly supported a policy to completely block banks' exposure to digital assets. India's tax authority also formally warned of tax-evasion risks tied to digital assets.