Bitcoin price wedged into ‘most divided’ FOMC as Iran war spikes oil prices 8%

Bitcoin traders weathered an oil-price surge and ongoing Asia chip-stock sell-off into the Federal Reserve interest-rate decision.

Bitcoin (BTC) whipsawed around $64,000 on Wednesday as geopolitical and macroeconomic tensions pressured US stocks.

Data from TradingView showed BTC/USD halting a local rebound at the Wall Street open, having hit 11-day lows of $62,700 the day prior.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

These came as part of a risk-asset rout by a selloff in Asian chip-stocks. This trend continued on Wednesday as markets showed increasing concern over the debt obligations by semiconductor and AI giants.

Renewed nerves over escalation in the US-Iran war added to the headwinds, with US President Donald Trump threatening a “beating” as tit-for-tat strikes continued.

“We’ll be hitting them hard. They’re going to get a beating,” he said in an interview with Fox News.

Oil prices snapped higher as a result, with WTI and Brent crude up 7.6% and 5.4%, respectively. Oil-price hikes could significantly impact trends in the Consumer Price Index (CPI), with inflation concerns having a knock-on effect on interest-rate expectations.

CFDs on US WTI crude oil one-day chart. Source: Cointelegraph/TradingView

Markets are awaiting the result of the Federal Reserve’s latest decision on the federal funds rate. The July meeting of the Federal Open Market Committee (FOMC) will include a statement and press conference by Fed Chair, Kevin Warsh. Though Warsh has given less guidance than his predecessor, traders will watch for cues to future policy shifts.

Commenting, trading resource The Kobeissi Letter noted split opinions as to the Fed’s move on rates. The latest data from CME Group’s FedWatch Tool showed 66.3% odds of current levels of 3.5%-3.75% remaining in place, with a 0.25% hike attracting 33.7%.

“Market expectations for tomorrow’s Fed decision are among the most divided in recent history,” it wrote.