Middle East tensions escalated, US stocks pulled back from their highs, and Bitcoin held steady around $80,000.

Due to the latest situation in the Middle East pushing up oil prices, U.S. stocks have pulled back from their recent highs. Yesterday, Bitcoin (BTC) broke through the $80k level; as of the time of writing, it had reached a peak of $80,776, a new high since late January this year. In the options market, open interest for $80,000 call options has increased significantly, indicating that more investors are betting that BTC will rise from this level later this month.

Middle East situation pushes up oil prices; U.S. stocks retreat from record highs

Iran attacks the UAE; an Iranian drone strikes the Fujeirah oil industrial zone, causing a fire and injuring three people.

U.S. President Trump said the United States will begin guiding ships not involved in the Iran conflict to pass through the Strait of Hormuz. According to Bloomberg, the U.S. has helped two ships pass through the strait, but reports that a Korean ship also exploded and caught fire in the strait have further heightened tensions, and the strait is still basically closed.

A practical shutdown of the Strait of Hormuz poses a serious threat to global energy supply, and oil prices have surged sharply this week. At the same time, the rise in oil prices lifts inflation expectations, causing U.S. Treasury yields across the board to rise. The 30-year Treasury yield first broke above the 5% threshold, and U.S. stocks pulled back from record highs. Gold prices, meanwhile, fell to above $4,500 due to a stronger dollar and worries about inflation.

Bitcoin breaks through the $80,000 level

Bitcoin (BTC) launched its move yesterday morning, surging past the $80,000 mark in one push; as of the time of writing, it reached a peak of $80,776, a new high since late January this year.

Since the U.S. and Iran went to war, Bitcoin’s price has risen by about 20%. Recently, market sentiment has been bullish, with expectations that the U.S. may reach an agreement on a key stablecoin yield provision, paving the way for comprehensive cryptocurrency legislation to advance in the Senate.

(CLARITY Act stablecoin yield agreement reached: passive prohibitions, active incentives retained)

On the crypto exchange Deribit, open interest for call options with a strike price of $80,000 has increased significantly and remains the most demanded contract on the platform. The surge in demand suggests that more investors are betting that Bitcoin’s price will rise from this level later this month.

U.S. Bitcoin spot exchange-traded funds (ETFs) saw net inflows of $630 million last Friday.

This article first appeared on 链新闻 ABMedia.