Bitcoin dropped below $62,000 on Wednesday after U.S. President Donald Trump said the U.S.-Iran ceasefire framework was no longer in place.
The decline came after fresh overnight attacks between the two sides. Investors were also waiting for minutes from the Federal Reserve’s latest policy meeting.
The world’s largest cryptocurrency was last trading 2.2% lower at $61,681.2 by 09:53 ET. In the previous session, Bitcoin had climbed above $64,500.
Trump Comments Pressure Crypto Sentiment
Speaking at a NATO summit in Turkey, Trump said Iran had violated the terms of the fragile ceasefire agreement.
He claimed that both sides had reached an understanding, but Tehran later denied key parts of the deal publicly. Trump then said that, in his view, the agreement was over.
His remarks added fresh pressure to risk assets, including cryptocurrencies.
New U.S.-Iran Tensions Push Oil Higher
Trump’s comments followed U.S. strikes on Iranian military targets on Tuesday.
Those strikes came after Iran renewed attacks on commercial shipping in the Strait of Hormuz.
Iran then responded with missile and drone attacks aimed at U.S. military facilities in the Gulf. This raised concerns about a wider regional conflict.
It also increased fears of possible disruptions to global energy supplies.
Brent Crude Rises on Supply Fears
Brent crude moved higher as traders priced in renewed supply risks through the Strait of Hormuz.
The oil price increase also revived concerns about inflation.
Higher energy prices could make the Federal Reserve’s policy outlook more difficult, especially if inflation pressures begin to rise again.
Markets are now focused on the Federal Open Market Committee’s June meeting minutes. Investors are looking for clues on how policymakers view inflation risks.
Bitcoin ETF Demand Remains Strong
Despite Wednesday’s pullback, institutional demand for Bitcoin remained solid.
U.S.-listed spot Bitcoin ETFs recorded three straight days of net inflows on Tuesday, according to SoSoValue data.
These inflows helped Bitcoin recover from its late-June lows. However, weekly ETF flows remained negative overall after heavy withdrawals in earlier sessions.
SEC May Propose New Crypto Rule
The U.S. Securities and Exchange Commission could introduce its first major cryptocurrency rule as early as this month.
According to the agency’s updated rulemaking agenda, the proposal may ease fundraising and regulatory requirements for crypto startups.
The rule, known as “Reg Crypto,” is expected to offer exemptions or safe harbors for some crypto-related activities.
These activities would otherwise fall under U.S. securities laws.
Crypto Regulation Remains in Focus
The potential SEC proposal comes as Chair Paul Atkins pushes for a clearer regulatory framework for digital assets.
At the same time, Congress is still considering broader cryptocurrency legislation.
A clearer rulebook could help crypto companies operate with more confidence in the U.S. market.
Altcoins Fall Alongside Bitcoin
Most major altcoins also moved lower on Wednesday as risk appetite weakened.
Ethereum, the world’s second-largest cryptocurrency, fell 2% to $1,734.92.
XRP dropped 3.3% to $1.0837, while Solana declined 4.8%.
Cardano was among the weakest major tokens, falling nearly 6%.
Dogecoin also slipped 3.4% as meme tokens came under pressure.
Crypto Market Faces Fresh Uncertainty
Bitcoin’s latest decline shows how quickly geopolitical tensions can affect the crypto market.
Rising oil prices, inflation fears, and uncertainty around Federal Reserve policy are all adding pressure.
For now, investors are watching three key factors: U.S.-Iran tensions, oil prices, and the Fed’s next policy signals.
