Crypto prices continued their strong downtrend today, March 8, as the war in Iran continued, pushing crude oil prices to $115 ahead of the upcoming US inflation report.
Conclusion
- Crypto prices continued to fall today, with Bitcoin reaching $96,000.
- The price of crude oil in Hyperliquid increased to 115 dollars.
- The US will release its inflation report on Wednesday this week.
Bitcoin (BTC) price dropped to $67,000 on Sunday from last week’s high of $74,000. The index tracking the top 20 cryptocurrencies fell by 1.29% in the last 24 hours, while the Crypto Fear and Greed Index fell by 18.
Crypto prices fell amid signs that the war in Iran is far from over, pushing crude oil prices to their highest level since 2022. West Texas Intermediate, which ended the week at $90, rose to $115. Brent, the global benchmark, is approaching a critical resistance level at $120 in Hyperliquid.
Crude oil prices rose after most Middle Eastern countries cut production due to Iran’s closure of the Strait of Hormuz. Kuwait and the United Arab Emirates have announced that they will reduce production as the war continues.
Rising oil prices have a huge impact on crypto prices due to its effect on inflation. The latest macro data from the United States showed that inflation has continued to decline in recent months. Therefore, this war will change the trajectory and raise inflation in the coming months.
Rising inflation will make it difficult for the Federal Reserve to cut interest rates. In fact, Polymarket data shows traders have downgraded their outlook for the Federal Reserve’s interest rate cut over the course of the year.
The war in Iran is also low for the crypto market, as Bitcoin has proven to be an unreliable hedge against inflation and geopolitical risks.
Going forward, crypto prices will react to the upcoming US inflation report on Wednesday. Economists polled by Reuters expect upcoming figures to show the consumer price index rose to 2.5 percent in February from 2.4 percent previously.
Core inflation, which excludes volatile food and energy prices, is expected to reach 2.5. US inflation expectations continued to rise this month as the war continued.
Traders will focus on several cryptocurrencies this week. The price of the Pi Network will be in the spotlight ahead of this Saturday’s Pi Day event. Similarly, Polkadot will be in the spotlight ahead of the Tokenomics upgrade on March 12.
