Bitcoin near $63.2K as Iran closes Strait of Hormuz, U.S. PPI rises

Bitcoin held near $63,200 on Thursday after reports that Iran had closed the Strait of Hormuz and U.S. producer prices rose sharply. BTC reached local highs of $63,200 on Bitstamp and was up about 2.5% on the day, with traders watching whether the $60,000 support level would hold.

Reports said Iran ordered the waterway closed “until further notice” following attacks on U.S. infrastructure in Gulf states. The announcement pushed U.S. West Texas Intermediate crude above $91 per barrel as markets priced in potential disruptions to flows through the strait.

Former President Donald Trump posted on Truth Social that Iran would be hit “very hard” and suggested U.S. forces could take Kharg Island and other oil infrastructure points to control oil and gas markets. He had previously posted that the United States “controls” the Strait of Hormuz.

Inflation data added pressure across risk assets. The Bureau of Labor Statistics reported that for the 12 months ended in May, producer prices for final demand less foods, energy and trade services rose 5.1%, the largest 12-month increase since October 2022. The May consumer price index rose 4.2% year-on-year, and the energy index increased 23.5% over the same period.

Trading firm QCP Capital wrote in a market bulletin that markets were being asked to price both military escalation risk and potential energy disruption risk at the same time, and that investors were less willing to increase exposure when headlines could move prices rapidly.

On technical charts, traders identified resistance near $63,300 and $65,800. Crypto analyst Michaël van de Poppe wrote on X that a break above those areas would open the way for stronger gains, adding, “Break through the areas at $63.3K and $65.8K and we’ll be looking at a lot more upside.” Some market participants pointed to unfilled gaps in CME Group’s Bitcoin futures between roughly $75,000 and $80,000 as possible longer-term targets if prices sustain a rally.

Market participants said the near-term path for Bitcoin and other risk assets will depend on further developments in the Gulf and upcoming U.S. economic reports, with traders monitoring headlines and energy prices closely.