Bitcoin fell below $73,000, reaching its lowest level since April 13, as escalating tensions between the U.S. and Iran rattled global markets. The decline followed U.S. military strikes in southern Iran, prompting Iran's Revolutionary Guards to threaten more decisive retaliation against U.S. forces, according to reports.
The conflict has raised concerns over the stability of the Strait of Hormuz, a critical oil transport route, with traders now viewing the likelihood of a ceasefire by the end of May at just 8%, a significant drop from 70% earlier in the week. By the end of June, expectations for a ceasefire have also decreased from 76% to 42%.
In reaction to these developments, Brent crude oil prices surged nearly 4%, approaching $96 per barrel, heightening fears of inflationary pressures globally. Rony Szuster, head of research at Mercado Bitcoin, noted that the cryptocurrency market is being influenced by these geopolitical tensions and upcoming U.S. inflation data, specifically the personal consumption expenditures (PCE) report.
