Bitcoin Slides Under $66K Amid Rising Global Tensions

Bitcoin has slipped back below the $66,000 mark as traders react to rising tensions between the United States and Iran. The price dropped over 1 percent recently, landing near $65,700 during the latest session. Geopolitical instability often creates immediate ripples across digital asset markets as investors move toward safer positions.

The climb in oil prices triggered by these regional threats is forcing a rethink on economic policy. Many market participants are now concerned that higher energy costs will keep inflation sticky. This shift has boosted expectations that the Federal Reserve may decide to hike interest rates again later this year to cool the economy.

Higher rates generally weigh on risk assets like Bitcoin, as they increase the cost of borrowing and make non yielding assets less attractive. Traders are now watching closely to see if Bitcoin can hold current support levels or if further instability will drive the price even lower in the coming days.