Bitcoin drops under $63K as Hormuz risk lifts rates fears

Bitcoin fell below $63,000 as traders priced a fresh macro risk into crypto: higher oil, higher yields, and less room for Federal Reserve rate cuts. The move matters because it shows Bitcoin trading like a risk asset, not a haven, when inflation fears rise.

BTC changed hands near $62,940, down about 1.4% over 24 hours. Ethereum, XRP, and Solana also slipped, each posting losses of less than 2%. CoinGlass data showed $252.9 million in crypto liquidations over the same period, with leveraged longs taking most of the hit. Forced closures of undercollateralized trades likely added pressure as prices moved lower.

The sell-off followed renewed fighting between the US and Iran centered on the Strait of Hormuz. Brent crude rose as much as 4% and neared $80 a barrel, reviving concern that energy costs could keep inflation above the Fed's target. Fed minutes from June showed a few policymakers still saw a case for raising rates, even though the benchmark was left at 3.5% to 3.75%.

Polymarket traders assigned only a 3% chance that traffic through Hormuz would meet the market's recovery threshold by July 31. As yields and the dollar climbed, Bitcoin weakened along with other speculative assets.