Investing.com– Bitcoin rose on Wednesday, briefly touching a three-week high as a softer-than-expected U.S. inflation print helped soothe concerns over higher interest rates.
But bigger gains in cryptocurrencies were limited by continued uncertainty over the U.S.-Iran war, as both sides launched more attacks and signaled few plans for de-escalation.
rose 3.7% to $64,938.1 by 02:00 ET (06:00 GMT), briefly hitting an intraday high of $65,055– its highest level since June 22.
Bitcoin recovers after soft CPI cools rate hike bets
Bitcoin extended gains from Tuesday as softer-than-expected U.S. data helped ease concerns that an interest rate hike by the Federal Reserve was imminent.
Fears of higher rates had been a major weight on non-yielding, speculative assets like crypto in recent weeks, given that they increase the opportunity cost of investing in the sector over government debt.
Still, overall gains in crypto were limited by caution over higher rates in the longer term. Fed Chair Kevin Warsh, in his first ever Congressional testimony, reiterated the central bank’s commitment to its 2% annual inflation target.
Warsh’s testimony, coupled with recent hawkish comments from other Fed officials, indicated that the central bank still maintained a tightening bias. A resurgence in U.S. inflation– especially in the face of renewed oil supply disruptions in the Middle East– could once again see rate hike fears creep back into markets.
US-Iran war rages on; Trump says strikes to continue until deal is reached
The U.S. and Iran traded strikes in the early hours of Wednesday, with renewed military action between the two showing few signs of easing.
U.S. President Donald Trump said his administration had been in contact with Iran on Tuesday, but warned that strikes against the country will continue and potentially escalate until a deal is reached.
Iran had retaliated against U.S. aggression by launching missile and drone strikes on several surrounding Gulf countries with U.S. bases. Tehran also kept up its attacks on commercial ships in the Strait of Hormuz and warned that it could disrupt other key shipping channels in the region.
The developments sent oil prices surging, keeping markets on edge over an energy-driven resurgence in inflation.
Crypto price today: altcoins rebound tracking Bitcoin
Broader crypto prices advanced on Wednesday, recouping a measure of recent losses.
But like Bitcoin, most crypto units were nursing deep losses this year, amid waning institutional and retail appetite for the sector. A broader pivot into artificial intelligence stocks also sapped appetite for crypto.
World no.2 crypto rose 5.8% to $1,886.86, while rose 3.8% to $1.1101.
and rose 4.4% and 3.6%, respectively, while added 2%.
Among memecoins, rose 3% and rose 2.3%.