Bitcoin (BTC) hovered near $78k after failing to break above $78,700, showing signs that the recent rally from around $65,000 is losing momentum. Ether also weakened, trading near $2,300 as broader crypto markets turned cautious amid macroeconomic stress and geopolitical risks.
Japan Inflation Data and Bank of Japan Policy Outlook
Fresh inflation data from Japan added pressure to risk assets. The Corporate Service Price Index rose 3.1% year-on-year in March, above expectations of 3.0%. Core inflation increased to 1.8% from 1.6%, while headline inflation climbed to 1.5%.
A stronger yen could trigger unwinding of global carry trades, increasing volatility across financial markets.
Iran War, Oil Shock, and Strait of Hormuz Risks
Geopolitical tensions from the Iran conflict continued to disrupt global energy markets. WTI crude futures have surged over 39% to $95 since late February, driven by disruptions in the Strait of Hormuz, through which nearly 20% of global seaborne oil flows.
Reports indicate Iran has deployed additional naval mines, while shipping traffic has dropped sharply. The Pentagon estimates mine clearance could take at least six months after hostilities end, raising sustained inflation risks.
Rising oil prices and inflation expectations are complicating Federal Reserve rate cut forecasts, keeping liquidity conditions tight. Analysts warn that a stronger yen and higher energy costs could increase risk aversion, weighing further on Bitcoin and Ether momentum in the near term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.