Bitcoin Drops 2% Amid US‑Iran Strikes
Bitcoin slipped more than 2% on Wednesday, trading down 2.1% at $62,115.3 by 17:38 ET (21:38 GMT) after having risen above $64,600 earlier in the week. The decline coincided with the biggest escalation of U.S.–Iran tensions since their interim peace deal in mid‑June, as the United States launched strikes against Iran in retaliation for attacks on three commercial oil tankers in the Strait of Hormuz, and Iran responded with its own strikes. President Donald Trump, speaking at a NATO summit in Turkey, declared the ceasefire “over,” signaled that the U.S. might reinstate a naval blockade on Iranian ports, and warned that Iran would “probably” be hit hard again.
Oil Market Reaction
Amid the heightened geopolitical risk, Brent crude futures briefly topped $80 a barrel for the first time since June 22, pushing oil prices higher and adding to market risk aversion.
Federal Reserve Minutes
The Federal Reserve’s June 16‑17 meeting minutes showed participants noting that inflation remained high, partly due to energy‑supply shocks from the Middle‑East conflict. The debate over monetary policy was evenly split, with some members advocating an immediate rate hike while most expected inflation to gradually move toward the 2% target on its own. Scenarios cited included persistent inflation from strong AI‑related demand, the Middle‑East conflict, and tariff effects, with almost all participants indicating that some policy firming would likely be required.
Crypto Market Dynamics
Despite the price drop, institutional demand for Bitcoin stayed resilient. U.S.-listed spot Bitcoin ETFs recorded three consecutive days of net inflows on Tuesday, according to SoSoValue data, reversing a recent outflow streak, although weekly flows remained negative overall. Altcoins followed Bitcoin lower: Ethereum fell 2.1% to $1,735.98, XRP slipped 2.2% to $1.0888, Solana and Cardano each shed 4.5%, and Dogecoin dropped 2.1%.
Potential SEC Regulation
The U.S. Securities and Exchange Commission, under Chair Paul Atkins, may propose its first major cryptocurrency rule—referred to as “Reg Crypto”—as early as this month. The proposal is expected to provide exemptions or safe harbors for certain crypto‑related activities that would otherwise fall under U.S. securities laws, aiming to create a clearer regulatory framework for digital‑asset startups while Congress considers broader legislation.