403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Bitcoin Under Pressure as Rate Hike Expectations and Middle East Tensions Weigh on Sentiment
(MENAFN- MENAFNEditorial) Bitcoin remained under some pressure on Tuesday, although it continued to hold above in a consolidation range. Expectations of tighter monetary policy and persistent tensions in the Middle East continued to weigh on risk appetite.
Attention is centred on this week's US inflation release, which could prove decisive for the monetary policy outlook. Markets currently price in an interest rate hike at next week’s Federal Reserve meeting. An upside surprise in inflation could reinforce tightening expectations and push Treasury yields higher, creating additional pressure on Bitcoin. Softer inflation would likely ease those concerns and provide some relief.
The restrictive backdrop extends beyond the United States. Expectations of tighter monetary policy in Japan increased after stronger-than-expected GDP data, ahead of next week's Bank of Japan decision. Meanwhile, the European Central Bank is expected to deliver another rate hike on Thursday. Together, these developments have kept global bond yields elevated, reducing Bitcoin’s appeal.
Ongoing geopolitical tensions in the Middle East are adding to that pressure through inflation expectations. Oil prices have climbed to their highest levels in several months on renewed incidents, raising concerns that elevated energy prices could force central banks to tighten monetary policy. These expectations could prove decisive for ETF flows, which have shown resilience after the heavy withdrawals recorded in May and June. The Senate is expected to vote on the CLARITY Act next week. Progress could support institutional confidence, whereas another delay could weigh on sentiment.
Attention is centred on this week's US inflation release, which could prove decisive for the monetary policy outlook. Markets currently price in an interest rate hike at next week’s Federal Reserve meeting. An upside surprise in inflation could reinforce tightening expectations and push Treasury yields higher, creating additional pressure on Bitcoin. Softer inflation would likely ease those concerns and provide some relief.
The restrictive backdrop extends beyond the United States. Expectations of tighter monetary policy in Japan increased after stronger-than-expected GDP data, ahead of next week's Bank of Japan decision. Meanwhile, the European Central Bank is expected to deliver another rate hike on Thursday. Together, these developments have kept global bond yields elevated, reducing Bitcoin’s appeal.
Ongoing geopolitical tensions in the Middle East are adding to that pressure through inflation expectations. Oil prices have climbed to their highest levels in several months on renewed incidents, raising concerns that elevated energy prices could force central banks to tighten monetary policy. These expectations could prove decisive for ETF flows, which have shown resilience after the heavy withdrawals recorded in May and June. The Senate is expected to vote on the CLARITY Act next week. Progress could support institutional confidence, whereas another delay could weigh on sentiment.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment