Bitcoin (BTC $70,458.43) dropped sharply from its recent $74,000 range on Wednesday as escalating tensions in Iran combined with stronger-than-expected U.S. inflation data to unsettle markets.
The selloff began after U.S. President Donald Trump adopted a hardline stance on Iran, calling it the “NUMBER ONE STATE SPONSOR OF TERROR,” while Iran’s state TV reported an attack on the South Pars gas field. Tensions intensified with reports of Israel killing Iran’s Intelligence Minister Esmail Khatib and the U.S. deploying 5,000-pound bunker-buster bombs near the Strait of Hormuz, a key global oil route.
WTI crude surged from $92 per barrel to nearly $96. Minutes later, U.S. February PPI data showed headline PPI rising 0.7% versus 0.3% expected and core PPI up 0.5%, highlighting persistent inflation pressures.
Bitcoin fell toward $71,000, down 3.5% over 24 hours, while ether (ETH), solana (SOL), and XRP (XRP) dropped closer to 5%. U.S. equities were modestly lower, and gold fell 2.5% to $4,885 per ounce.
Markets now turn to the Federal Reserve meeting, where rates are expected to hold steady, with Chair Jerome Powell’s guidance under close scrutiny amid inflation and geopolitical risks.
