Bitcoin slips below $63k as fresh US-Iran tensions dampen risk appetite
Investing.com-- Bitcoin fell below $63,000 levels on Wednesday as escalating military tensions between the U.S. and Iran dampened risk appetite, while investors awaited minutes from the Federal Reserve's latest policy meeting.
The world's largest cryptocurrency last traded 1.2% lower at $62,553.2 by 02:48 ET (06:48 GMT), after climbing above $64,500 in the previous session.
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Fresh US-Iran tensions lift oil, weigh on crypto
Washington launched strikes on Iranian military targets on Tuesday following Tehran's renewed attacks on commercial shipping in the Strait of Hormuz.
Iran responded with missile and drone strikes targeting U.S. military facilities in the Gulf, stoking fears of a broader regional conflict and potential disruptions to global energy supplies.
Brent crude climbed as traders priced in the renewed risk of supply disruptions through the Strait of Hormuz, reigniting concerns that inflationary pressures could complicate the Federal Reserve's policy outlook.
Markets are now focused on the Federal Open Market Committee's June meeting minutes, due later on Wednesday, for signals on how policymakers view inflation risks.
Despite Wednesday's decline, institutional demand for Bitcoin remained resilient. U.S.-listed spot Bitcoin exchange-traded funds recorded three straight days of net inflows on Tuesday, according to SoSoValue data.
The ETF inflows have helped reverse a recent streak of withdrawals and supported Bitcoin's recovery from late-June lows, although weekly flows remained negative overall after heavy outflows in previous sessions.
SEC could propose crypto rule this month
The U.S. Securities and Exchange Commission could propose its first major cryptocurrency rule as early as this month, potentially easing fundraising and regulatory requirements for crypto startups, according to an updated agency rulemaking agenda.
The proposal, known as "Reg Crypto," is expected to provide exemptions or safe harbors for certain crypto-related activities that would otherwise fall under U.S. securities laws.
The move comes as the SEC, under Chair Paul Atkins, seeks to establish a clearer regulatory framework for digital assets while Congress considers broader cryptocurrency legislation.
Crypto price today: altcoins slip; XRP drops 4%, Cardano slumps 7%
Most altcoins fell on Wednesday, extending losses amid a cautious mood.
World no.2 crypto Ethereum lost 1.8% to $1,747.92.
World no. 3 crypto XRP fell 4% to $1.0874.
Solana eased 4.3%, while Cardano declined 7%.
Among meme tokens, Dogecoin slipped 5%.
