The military action by the United States against Iran's Strait of Hormuz and nearby islands has rattled traditional markets, yet Bitcoin (BTC) barely moved during Asian trading hours, continuing its August outperformance over gold and stocks.
The attack has intensified the energy crisis, following six months of conflict that had already disrupted the Strait of Hormuz. TradingView data shows WTI crude rising nearly 2% to $85.10 per barrel, while Brent crude climbed 1.9% to $92.39. In contrast, safe-haven gold slipped 0.8% to $4,418 per ounce, Nasdaq futures dropped 0.5%, and Asian equities followed suit with declines.
Bitcoin held steady at around $77,580, unchanged since midnight UTC, posting a 23% gain this month—far outpacing gold's 9% rise and Nasdaq's 4% advance. Meanwhile, Ripple (XRP) fell 0.8%, and SOL declined 0.6%.
What's propping up Bitcoin?
Data compiled by Woofun AI suggests that spot ETF inflows and expectations of Federal Reserve intervention have been underpinning BTC. However, hawkish remarks from Fed Chair Kevin Warsh at the Jackson Hole symposium have shifted the macroeconomic landscape. Warsh emphasized that inflation remains unchecked and financial conditions are not restrictive enough, prompting markets to reassess interest rate expectations. Mitsubishi UFJ Financial Group FX strategist Lloyd Chen noted that the probability of a September rate hike has climbed to 58%, with markets pricing in 1.5 hikes by year-end.
Cryptocurrency industry observers are advising investors to avoid excessive leverage amid macroeconomic uncertainty, recommending phased entries and controlled position sizing. Vikram Subbaraj, CEO of exchange Giottus, stated that Bitcoin shows strong support near $77,000, but the $79,400 to $80,800 range remains a critical resistance zone ahead of the US employment data release on September 4th.
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