Bitcoin fell over the past 24 hours to $62,600 as traders abandoned riskier investments amid growing inflation concerns linked to rising oil prices.
Brent crude is up almost 4% over the period, reflecting the resumption of open conflict between the United States and Iran. This revives the so-called Nacho (No Chance of Opening Hormuz) trade, which is betting that the strategic waterway remains closed.
The broader CoinDesk 20 Index (CD20) has lost 0.6% of its value over the same period, while equity benchmarks in Europe are down around 1% and US index futures 0.3%.
Attacks on oil tankers have reduced traffic through the Strait of Hormuz, which carried about a fifth of the world’s oil and gas supplies before the conflict and has been de facto closed for 136 days. Oil prices reached their highest level in four weeks after the resumption of hostilities.
The move undoes some of the peace trading that helped Bitcoin recover from its late June lows. Rising oil prices increase near-term inflation risks, pushing up Treasury yields and reducing demand for rate-sensitive assets.
