Key Highlights
- Equity futures advanced Thursday following a renewed US military operation targeting Iran
- Bitcoin (BTC) maintained support above $62,000, showing a 1.2% daily decline but posting a 1.6% weekly gain
- Gold continued its downward trend for four consecutive sessions while Brent crude extended gains for the third day, reaching $78.80 per barrel with a 1% increase
- Market expectations for the Federal Reserve’s next rate increase have shifted from December to October
- The Fear and Greed index for Bitcoin rose to 27, breaking a 40-day streak in extreme fear zone
US equity futures showed upward momentum Thursday morning as America executed additional military operations against Iranian targets.
Futures contracts tied to both the Dow Jones Industrial Average and the S&P 500 registered 0.1% gains. Nasdaq-100 futures demonstrated stronger performance with a 0.3% advance.
US military officials confirmed late Wednesday evening that they had “initiated further strikes against Iran to continue degrading their capacity to threaten maritime freedom in the Strait of Hormuz.”
President Trump officially ended the ceasefire agreement between the nations earlier Wednesday. He additionally suggested the potential implementation of a US naval blockade in the Strait of Hormuz.
Equity markets ended Wednesday’s session with mixed results after surrendering earlier gains. Energy prices surged in response to the President’s statements.
Energy Climbs While Precious Metals Decline
Brent crude advanced 1% to reach $78.80 per barrel, marking its third consecutive session of appreciation.
Gold extended its losing streak to four days, hovering around $4,060 per ounce. Rising interest rate projections are pressuring the precious metal, as it becomes less attractive when fixed-income instruments offer competitive yields.
Market participants have adjusted their expectations for the Federal Reserve’s next rate adjustment to October, moving it forward from previous December estimates.
Cryptocurrency Markets Remain Stable
Bitcoin was changing hands at $62,009, reflecting a 1.2% decline over the past 24 hours while maintaining a 1.6% weekly increase.
Ether traded at $1,730, down 1.2% daily but showing a robust 5.7% gain across seven trading sessions.
Solana emerged as the session’s underperformer, priced at $77.25 with a 1.8% daily decline and 1.7% weekly loss. XRP decreased 0.7% to settle at $1.09.
Bitcoin’s response to geopolitical tensions has been notably subdued. Historically, news concerning the Strait of Hormuz could trigger 5% single-day declines in Bitcoin. This week’s price movement registered only 1.2%.
This trend has persisted since February. Each successive escalation has generated progressively smaller price reactions in Bitcoin markets.
Market participants appear to be interpreting this situation through an interest rate lens rather than as a crypto-specific risk event. Bitcoin is demonstrating stronger correlation with interest rate forecasts than with energy price movements.
The critical support level remains at $60,000. Bitcoin has successfully maintained this threshold despite simultaneous pressures from rate repricing, energy market volatility, and fixed-income selloffs.
The Fear and Greed index advanced to 27 Thursday, concluding a 40-day period in extreme fear territory. The indicator hasn’t sustained levels above 50 since November.
Government bonds across Japan, Australia, and New Zealand declined Thursday, continuing Wednesday’s worldwide selloff. Two-year Treasury yields approached their 2026 peaks.
Market attention is also focused on the artificial intelligence chip sector. SK Hynix’s upcoming Friday IPO will provide fresh insights into semiconductor demand following June’s sector-wide correction.
Bitcoin maintaining the $60,000 threshold through additional geopolitical escalations, while gold continues declining, suggests markets are increasingly viewing cryptocurrency as a rates-sensitive asset rather than a traditional risk hedge.
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