Bitcoin lost ground in Asian trading on Monday, July 13, 2026, as oil prices surged following new U.S. strikes against Iran—reigniting investor concerns over inflation. The cryptocurrency fell as much as 2.5%, dropping to $62,600 in Singapore-based trading. It later pared some losses, trading down roughly 1.5% to 1.6% near $62,700—but market participants remain uneasy amid escalating tensions between the U.S. and Iran.
Technical Weakness Adds Pressure
Bitcoin dipped below its 200-week moving average—a key technical level often interpreted as a potential signal of a prolonged bear market. This break adds to broader sentiment concerns, especially as risk assets face headwinds from rising geopolitical uncertainty.
Ether Follows Suit
Ether, the second-largest cryptocurrency by market capitalization, also declined by 2.5%, before slightly recovering. The broader sell-off comes amid mounting pressure on U.S. equity derivatives and rising oil prices driven by heightened hostilities in the region, according to Richard Galvin, CEO of DACM, a crypto investment firm whose commentary is featured by Bloomberg.
Inflation and Rate Hikes in Focus
Escalating U.S.-Iran tensions have intensified fears that higher oil prices could reignite inflation and prompt the U.S. Federal Reserve to raise interest rates. Market attention this week turns to U.S. inflation data—and comments from Fed Chair Jerome Powell (note: ‘Kevin Warsh’ in the Greek text appears to be an error; the current Fed Chair is Jerome Powell) on economic outlook and monetary policy.
“A higher-than-expected rise in the consumer price index would likely strengthen expectations for a Fed rate hike before year-end—weighing on Bitcoin,” said Tony Sycamore, analyst at IG Australia. He added that a softer or more benign inflation print would support Powell’s recent remarks suggesting inflationary pressures are easing.