Bitcoin rebounds above $84000 after falling to $83,000 in the last 24 hours. The leading crypto trades at around $84,300 at press time. It is down less than 1% today, according to TradingView data.
Why Bitcoin Rebounds Above $84,000
The rebound followed a Reuters report. Specifically, U.S. and Iranian negotiators are exploring a phased plan. This plan would end the war and reopen the Strait of Hormuz. It would also end the U.S. blockade. However, the report noted that nothing concrete has emerged. Neither side is willing to give up its leverage first.
Oil Prices and Inflation Pressure Bitcoin
Meanwhile, the U.S.-Iran war continues to pressure energy prices. For example, Brent crude rose above $106 today. Additionally, diesel prices hit new highs. Consequently, uncertainty about the war’s end sparks inflation concerns. As a result, inflation trends well above the Fed’s 2% goal. Furthermore, this is bearish for Bitcoin and the broader crypto market.
Notably, the Fed raised rates last week. In fact, that was its first hike since 2023. Nevertheless, crypto prices rose to new local highs. However, a further rally remains under threat. Therefore, the odds of an October Fed rate hike are climbing. Meanwhile, the U.S. and Iran have yet to reach a deal.
Ceasefire Expected to Continue for Now
Currently, crypto traders are betting the ceasefire will continue. According to Polymarket, there is a 62% chance it lasts through October 31. In fact, the odds climbed over the last few days. This followed optimistic statements from U.S. officials. For instance, U.S. Secretary of State Marco Rubio said talks were positive yesterday. However, he added that no breakthrough has occurred yet.