Bitcoin edged lower on Tuesday as the broader cryptocurrency market remained under pressure amid persistent U.S.-Iran tensions, which heightened concerns over inflation and the outlook for interest rates.
Caution ahead of a high-level U.S. regulatory meeting also weighed on sentiment across crypto markets.
Bitcoin fell 0.43 percent to $64,207 by 7:38 GMT.
U.S.-Iran uncertainty weighs on crypto prices
Bitcoin and broader cryptocurrency prices remained under pressure as uncertainty surrounding the U.S.-Iran conflict continued to weigh on market sentiment.
Tensions between Washington and Tehran persisted over the Strait of Hormuz, with U.S. President Donald Trump continuing to pressure Iran and Oman to reopen the vital shipping route.
A sharp rise in oil prices has fueled concerns that higher energy costs could push inflation higher, potentially prompting interest rates to remain elevated in the coming months. Higher rates are generally negative for crypto assets, which tend to perform better in low-interest-rate environments with abundant liquidity.
Bitcoin and the broader crypto market have also remained under pressure this year amid concerns over tighter monetary conditions.
Read: Bitcoin climbs 0.83 percent to $63,513 as weaker dollar supports crypto rebound
Delays in Clarity Act impact investor sentiment
Delays in advancing the closely watched U.S. regulatory bill, the Clarity Act, have also weighed on sentiment.
President Donald Trump is expected to take part in a White House meeting of his administration’s newly established innovation committee on Wednesday. The session is set to bring together executives from cryptocurrency and prediction-market companies, as well as representatives from traditional finance and the artificial intelligence sector.
The White House gathering will precede a follow-up meeting at the Commodity Futures Trading Commission (CFTC) on Thursday. As the agency overseeing the innovation committee, the CFTC is expected to use the session to continue discussions on the regulatory framework for cryptocurrencies.
Broader cryptocurrency prices were largely lower on Tuesday, with the world’s second-largest cryptocurrency, Ether, slipping 0.13 percent to $1,898.45.
XRP fell 0.72 percent to $0.9956, while BNB declined 0.33 percent to $603.2. Solana edged up 0.26 percent to $75.978, while Cardano dropped 1.70 percent to $0.1731.
Among memecoins, Dogecoin and $TRUMP each declined by 0.71 percent and 1.04 percent, respectively.
