Bitcoin set for huge August gain despite Iran escalation and rate jitters
Bitcoin edged slightly higher on Monday, with gains capped by hawkish comments from Federal Reserve Chair Kevin Warsh. Risk sentiment in general was muted after a sharp escalation in tensions between the U.S. and Iran.
Bitcoin added 0.5% to $79,038.3 by 17:44 ET (21:44 GMT). The world’s largest crypto was headed for a monthly surge of more than 25%. Get more insights on Bitcoin with InvestingPro
Warsh comments push up rate hike bets
Warsh, speaking at the Jackson Hole economic symposium on Friday, said the central bank remained committed to its 2% annual inflation target.
While he did not explicitly mention any plans to hike interest rates, Warsh’s comments were widely viewed as hawkish, with markets ratcheting up bets that the central bank will hike interest rates by as soon as September.
Traders are pricing in a 60.4% chance the Fed will raise rates by 25 basis points in September, CME Fedwatch showed.
Still, key nonfarm payrolls data due later this week is expected to offer more direct cues on the central bank’s plans for rates.
Higher rates bode poorly for speculative assets like Bitcoin and cryptocurrencies. The sector’s rally in August was fueled chiefly by a sharp drop in Treasury yields following bond market intervention by the U.S. Treasury.
U.S.-Iran military escalation weighs
Crypto markets, in tandem with broader risk-driven assets, were spooked by renewed U.S.-Iran military action. The two sides exchanged strikes on Sunday, their first such move in over a month.
Oil prices rose sharply on the development, adding to concerns over higher inflation and interest rates.
Adding to uncertainty over Iran, U.S. President Donald Trump threatened to attack Iran’s key oil exporting hub, Kharg island. Treasury Secretary Scott Bessent also flagged plans for more economic sanctions on Tehran.
Strategy resumes Bitcoin buying after 2-month pause
Strategy made its first Bitcoin purchase since late June, acquiring 4,603 coins for $369.7 million last week at an average price of $80,318 each, the company said in a Monday morning press release.
The purchase was funded through the sale of $602.8 million in common stock. The remaining proceeds were directed toward $151.8 million in buybacks of the company’s STRC preferred shares, with the rest added to cash reserves.
Michael Saylor’s Strategy now holds a total of 845,050 bitcoin, acquired for $63.73 billion at an average price of $75,412 per coin.
Crypto price today: altcoins slip but head for bumper August
Broader crypto prices edged mostly lower on Monday, but, were headed for a strong performance in August.
World no.2 crypto Ether was little changed at $2,480.79, but was on track for a 33% jump in August.
Cardano, XRP, and Solana rocketed more than 18% each.
BNB slipped 0.7% and was set for a nearly 18% rise in August.
Among memecoins, Dogecoin was sitting on gains of nearly 18% for the month, while $TRUMP had improved more than 73%.
