Bitcoin has fallen in the past 24 hours to $62,600 as traders exited riskier investments amid rising inflation concerns linked to rising oil prices.
Brent crude is up nearly 4% in the period, reflecting the renewed open conflict between the US and Iran. It restarts the so-called Nacho (Not a Chance Hormuz Opens) trade, which bets that the strategic waterway will remain closed.
The broader CoinDesk 20 (CD20) index lost 0.6% of its value over the same period, while equity benchmarks in Europe fell around 1% and US index futures 0.3%.
Attacks on tankers have reduced traffic through the Strait of Hormuz, which carries the conflict with about a fifth of global oil and gas supplies and has been de facto closed for 136 days. Oil prices hit their highest level in four weeks after hostilities resumed.
The move reverses part of the peace trade that helped bitcoin recover from late June lows. Higher oil prices increase short-term inflation risks, push up government yields and reduce demand for interest-rate-sensitive assets.
