Bitcoin tested support at $67,500 as investors dumped gold and bonds in a broad rush to cash. Geopolitical tensions and surging oil prices above $85 fueled inflation fears and reduced expectations for near-term Federal Reserve rate cuts, creating a defensive market stance that left cryptocurrencies vulnerable.
Bitcoin retested the $67,500 support level amid a sharp correction in gold prices and a sell-off in US Treasuries. Investors appeared to be cutting risk and building cash positions as fears of a prolonged war in Iran pushed oil past $90.
Yields on the US 5-year Treasury jumped to a nine-month high of 4.10% as traders demanded better returns. The S&P 500 hit its lowest point in over six months, suggesting a broad rush to liquidity.
Bond market futures showed the implied probability of a Federal Reserve rate hike by July surged to 20.5%. This shift was up from 0% just one week prior, signaling a tight monetary policy outlook.
The Wall Street Journal reported the US planned to deploy roughly 3,000 troops to the Middle East to counter Iran’s influence. Kevin Hassett, director of the US National Economic Council, stated that $12 billion had already been spent on the conflict.
US legislators debated an additional $200 billion in funding, according to The Washington Post. Lawmakers did not authorize the war, and Congress showed growing unease with the military strategy, according to AP.
Meanwhile, the US national debt soared past $39 trillion, further pressuring consumers. Major tech stocks like Google, Meta, and IBM faced losses of 10% or more over six weeks.
Reuters reported that OpenAI offered private-equity firms a guaranteed minimum return of 17.5% while remaining largely unprofitable. The combination of declining stocks and persistent inflation explained the aggressive move to cash.
