Bitcoin (BTC) neared $66,000 at Friday’s Wall Street open as analysis called US inflation trends “objectively unsustainable.”
Key points:
Bitcoin drops further on oil-supply woes as Iran closes the Strait of Hormuz.
BTC price performance is set to seal its sixth straight month of losses at the March close.
Traders eye the lows with $70,000 back as resistance.
Oil squeeze creates US bond-market havoc
Data from TradingView captured ongoing BTC price losses, which approached 4% on the day and threatened to turn March into Bitcoin’s sixth consecutive “red” month.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Macro headlines drove weakness across risk assets. US stocks opened downward after Iran closed the Strait of Hormuz, sharpening nerves over global oil supplies.
With the US-Iran war set to extend into April, markets showed stress everywhere — including US bonds.
“The US bond market is in major trouble today,” trading resource The Kobeissi Letter warned in a post on X.
Kobeissi noted that the 10-year Treasury note was now at its highest levels since the war began, creating a major headache for the Federal Reserve as it tries to tame inflation as labor-market conditions worsen.
“In less than one month, markets have gone from discussing rate cuts to rate hikes, with the base case showing a Fed PAUSE for the next 18 months,” it continued.
“Keep in mind, the Fed was cutting interest rates because the labor market was weak, and it remains weak. However, inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable.”Federal Reserve target rate probabilities (screenshot). Source: CME Group FedWatch Tool
As Cointelegraph reported, oil prices have a pronounced impact on US inflation trends, while markets have also raised expectations of recession hitting in 2026.
“Inflation expectations have become so bad that the market is trading like an emergency Fed rate hike is imminent,” Kobeissi founder Adam Kobeissi added.
US two-year bond chart. Source: Adam Kobeissi/X
Bitcoin price resistance settles in at $70,000
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