Bitcoin Declines as Oil Prices Rise and Inflation Fears Resurface

Bloomberg

Monday, July 13, 2026 12:34 | 2 minutes read

Bitcoin pulled back in Asia on Monday as oil prices surged after the US launched new strikes on Iran, reigniting inflation fears. The original cryptocurrency dropped 2.4% to $62,600 as of 12:45 p.m. in Singapore.

This retreat pushed Bitcoin back below its 200-week moving average, a technical level that could signal a prolonged bear market. Meanwhile, Ethereum, the second-largest cryptocurrency, fell 2.5%.

Richard Galvin, CEO of cryptocurrency investment firm DACM, said: "The sell-off comes on the back of weakness in US equity futures and higher oil prices driven by escalating tensions with Iran."

Renewed hostilities between the US and Iran have heightened fears that rising oil prices could reignite inflation and push interest rates higher.

Investors will closely watch US consumer price data and Federal Reserve Chair Kevin Warsh's testimony this week for clues on the US central bank's policy outlook.

Sun, 12 2026

Tony Sycamore, analyst at IG Australia, said: "A higher-than-expected CPI reading is likely to reinforce expectations that the Federal Reserve will raise interest rates before the end of the year, putting pressure on Bitcoin." He added that a reading in line with or below expectations would support Warsh's previous comments that inflation pressures are easing.

Escalating Military Tensions in the Region

The US launched new missile strikes on Iran on Sunday, in what has become a recurring pattern of strikes and counterstrikes between Washington and Tehran, as both sides issued conflicting statements on whether the Strait of Hormuz remains open for navigation.

Brent crude oil rose 4.4% to over $79 a barrel as tensions escalated, sparking concerns over potential supply disruptions. However, spot Bitcoin ETFs listed in the US attracted inflows of $197.4 million last week, posting their first positive weekly performance in nine weeks.

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