Bitcoin has fallen in the past 24 hours to $62,600 as traders exited riskier investments amid growing inflation concerns tied to rising oil prices.
Brent crude is up nearly 4% in the period, reflecting the renewed open conflict between the U.S. and Iran. That’s reigniting the so-called Nacho (Not a Chance Hormuz Opens) trade, which bets the strategic waterway stays shut.
The broader CoinDesk 20 (CD20) index lost 0.6% of its value over the same period while equities benchmarks in Europe are down about 1% and U.S. index futures 0.3%.
Attacks on tankers have reduced traffic through the Strait of Hormuz, which carried about one-fifth of global oil and gas supplies before the conflict and has been de-facto closed for 136 days. Oil prices reached a four-week high after hostilities restarted.
The move reverses part of the peace trade that helped bitcoin recover from its late-June lows. Higher oil prices raise near-term inflation risks, pushing up Treasury yields and reducing demand for rate-sensitive assets.