Analysis: Geopolitical conflicts and inflation data deliver a double blow, bitcoin falls back to $72,300
Odaily reported that due to escalating tensions in the Middle East and US inflation data exceeding expectations, the price of bitcoin quickly fell back to $72,300, with a 24-hour decline of about 2%. Ethereum (ETH), Solana (SOL), and XRP dropped nearly 3%, and risk assets overall came under pressure. On the news front, US President Trump sent a tougher signal to Iran, calling it the "number one supporter of terrorism" and hinting that the situation may further escalate. Meanwhile, the South Pars gas field in Iran was attacked, Israel was reported to have killed Iran's intelligence minister, and the US used heavy bombs to strike missile facilities near the Strait of Hormuz, all of which intensified market tension and pushed WTI crude oil prices from about $92 to nearly $96.
On the macro data side, US February PPI rose 0.7% month-on-month, higher than the expected 0.3%; core PPI rose 0.5%, also above expectations. It is worth noting that this inflation data has not yet factored in the recent surge in oil prices, further increasing market concerns about inflation stickiness and weakening expectations for interest rate cuts.
Against this backdrop, the crypto market weakened in tandem with US stock futures, with the three major stock index futures turning from gains to losses of about 0.4%. Market focus has shifted to the upcoming Federal Reserve rate decision and Chairman Powell's statements on growth risks and inflation pressures. Meanwhile, Trump has once again publicly called for rate cuts, adding a political variable to this meeting. (CoinDesk)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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