bitcoin has fallen in the past 24 hours to $62,600 as traders abandoned riskier investments amid growing inflation concerns linked to rising oil prices.
Brent crude oil has risen almost 4% in the period, reflecting the renewed open conflict between the United States and Iran. This is reviving the so-called Nacho business (Not a chance for Hormuz to open), which is betting that the strategic waterway will remain closed.
The broader CoinDesk 20 index (CD20) lost 0.6% of its value over the same period, while equity benchmarks in Europe fell about 1% and US index futures fell 0.3%.
The attacks on oil tankers have reduced traffic through the Strait of Hormuz, which carried about a fifth of the world’s oil and gas supplies before the conflict and has been de facto closed for 136 days. Oil prices hit a four-week high after the resumption of hostilities.
The move reverses some of the peace trading that helped bitcoin recover from its late June lows. Higher oil prices increase near-term inflation risks, raising Treasury yields and reducing demand for rate-sensitive assets.
