Bitcoin slipped on Thursday, consolidating after a modest rebound in recent sessions as softer-than-expected U.S. inflation data reduced concerns about near-term interest rate increases, providing some support to cryptocurrencies.
However, ongoing U.S.-Iran tensions, which also drove a sharp rise in oil prices, continued to weigh on digital assets as investor sentiment turned more cautious. A sell-off in major semiconductor stocks further added to market uncertainty.
Bitcoin was down 0.88 percent to $64,145 by 11:42 GMT. Despite the decline, the world’s largest cryptocurrency rose around 3 percent for the week after recovering from its lowest levels of the year.
Inflation concerns persist amid renewed U.S.-Iran tensions
Bitcoin’s rebound was supported by reduced market expectations of an imminent Federal Reserve rate hike, particularly after June data showed softer consumer and producer inflation readings.
Higher interest rates typically weigh on non-yielding and risk-sensitive assets such as cryptocurrencies, meaning the prospect of a pause in rate increases provided some relief for the sector.
However, investors remained cautious over the potential inflationary impact of rising energy prices in the months ahead, as oil prices climbed amid renewed U.S.-Iran tensions. The two nations exchanged strikes for a fifth straight day, with little indication of progress toward a fresh ceasefire agreement.
Disruptions to oil shipments through the Strait of Hormuz continued to fuel price gains, raising concerns that a renewed inflation surge could eventually pressure central banks to keep interest rates elevated later this year.
Read: Bitcoin surges 2.94 percent to $64,684 as softer U.S. inflation lifts Ether, major altcoins
Strategy Inc. reiterates its commitment to accumulating Bitcoin
Strategy Inc. CEO Phong Le said the company remains committed to accumulating Bitcoin over the long term, adding that risks to its treasury strategy would only become significant if the cryptocurrency dropped to the $8,000-$10,000 range.
His remarks came after Strategy, the world’s largest corporate holder of Bitcoin, sold more than $215 million worth of the cryptocurrency earlier this month and went nearly a month without announcing any new purchases.
The pause in buying and the recent sales raised questions about the sustainability of the company’s Bitcoin-focused treasury strategy, particularly as it faces growing obligations tied to the capital and debt raised to finance its acquisitions.
Although the latest sales account for only a small share of Strategy’s overall Bitcoin holdings, prolonged selling by the company could pose a significant downside risk for the market given the sheer size of its reserves.
As Bitcoin declined, Broader cryptocurrency markets remained largely subdued on Thursday, with a lack of fresh positive catalysts keeping investor activity muted.
The world’s second-largest cryptocurrency, Ether, gained 0.3 percent to $1,885.19, while XRP slipped 0.3 percent. Solana declined 1.8 percent and Cardano dropped 1.2 percent, while BNB posted a marginal increase.
Among meme-based tokens, Dogecoin and the $TRUMP coin traded largely flat, moving less than 1 percent.
