Bitcoin price breaks through $77,418.89, facing Pentagon inflation warning

CryptoWorld News reports that, according to CoinDesk, Bitcoin’s price showed momentum to break above $80,000 when it reached $77,418.89, but the Pentagon’s inflation warning has reignited macroeconomic uncertainty. In a confidential briefing, the Pentagon told U.S. lawmakers that clearing operations in the Strait of Hormuz could take at least six months, and that the process would begin after the end of the U.S.-Iran conflict. The briefing also warned that gasoline and oil prices may remain elevated during the midterm elections, and that persistently high energy costs could keep inflation going, limiting the Federal Reserve’s room to cut interest rates, which would negatively affect risk assets. Bitcoin is particularly sensitive to interest rates and global liquidity conditions rather than actual economic activity. As essential living costs such as fuel and food rise, investors’ willingness to allocate capital to speculative assets may decrease. These risks have already shown up in the market: WTI crude oil prices rose from $79 last week to about $95, and government bond yields in major economies have also been increasing. The U.S. 10-year Treasury yield rose by 8 basis points this week to 4.32%, while the United Kingdom’s yield rose by 18 basis points to 4.96%.