Bitcoin Falls to $62,600 on US-Iran Clash, Slips Back Below 200-Week Average

Bitcoin fell after fresh US strikes on Iran and a jump in oil prices hit risk appetite. Rising energy costs revived inflation concerns and weakened sentiment for risk assets.

According to Bloomberg, Bitcoin dropped as much as 2.4% intraday on July 13 to $62,600. Ether also fell 2.5%.

The slide pushed Bitcoin back below its 200-week moving average, a key technical gauge of the long-term trend. Traders are watching whether the break of that support level develops into a broader bearish signal.

Richard Galvin, chairman of DACM, said rising tensions around Iran sent oil prices sharply higher and US stock-index futures lower, fueling selling in digital assets.

Concerns over disruptions to crude supply have also intensified as armed conflict between the US and Iran resumed. The US carried out additional missile strikes on Iran a day earlier, and the two sides have issued conflicting claims over shipping through the Strait of Hormuz. Brent crude rose as much as 4.4% intraday to above $79 a barrel.

Markets are focused on whether higher oil prices could reignite inflation and increase the chances of a Federal Reserve rate hike. This week's US consumer price index report and congressional testimony from Fed Chair Kevin Warsh are key indicators for the policy outlook.

Tony Sycamore, an analyst at IG Australia, said a hotter-than-expected CPI reading could strengthen expectations for a rate increase before year-end and weigh on Bitcoin. If the data matches forecasts or comes in lower, it would support the view that inflation pressures are easing.

Separately, US spot Bitcoin exchange-traded funds recorded net inflows of $197.4 million last week. It was the first weekly net inflow in nine weeks.