Bitcoin quickly pulls back to $72,300 as Iran fears team up with poor U.S. inflation data

The price of oil moved higher after reported attacks against Iran's South Pars gas field.

Make us preferred on Google

What to know:

• Trading around $74,000 for much of the last 24 hours, bitcoin quickly fell back to $72,500 following reports of stepped-up attacks against Iran's energy resources and an unexpectedly hot February PPI report.
• Results of the Federal Reserve's March policy meeting will come later today, and investors will be on the lookout for clues about how the central bank feels about the recent sharp rise in oil prices.

Quiet bitcoin BTC$72,474.13 price action in the $74,000 area was shattered Wednesday morning on reports of military escalation in Iran and then February inflation data that came in far stronger than expected.

The declines started as U.S. President Donald Trump struck a more aggressive tone on Iran, suggesting further escalation in a series of Truth Social posts and calling the country the "NUMBER ONE STATE SPONSOR OF TERROR."

Alongside, Iran's state TV reported that part of that country's South Pars gas field was attacked.

This followed reports that Israel killed Iran’s Intelligence Minister Esmail Khatib, while the U.S. deployed 5,000-pound bunker-buster bombs targeting missile sites near the Strait of Hormuz, a key route for global oil flows.

That news combined to send the price of WTI crude oil from as low as $92 per barrel overnight to nearly $96.

Minutes later, the U.S. Producer Price Index for February rose 0.7% versus just 0.3% expected and up from January's 0.5%. The core PPI rose 0.5% versus 0.3% expected, though down from January's 0.8%. Importantly, the disturbing inflation data is from prior to the attacks against Iran and the subsequent sharp rise in the price of oil.

The data complicates the outlook for rate cuts, especially with oil prices still elevated, and is weighing on risk assets ahead of the U.S. stock market open.

Bitcoin has now fallen to $72,300, down 2% over the past 24 hours. Declines for ether (ETH), solana (SOL) and XRP (XRP) are closer to 3%. U.S. stock index futures have swung from solid gains to declines of about 0.4% across the board.

Fed comes later

Later in the day, the U.S. Federal Reserve is widely expected to hold rates steady, shifting the focus to Chair Jerome Powell’s messaging and how policymakers interpret the recent mix of growth risks and inflation pressures. Trump once again renewed calls for rate cuts in a Wednesday post, adding a political dimension to the meeting.

More For You

Bitcoin’s rally runs into 'sell the news' risk ahead of Fed decision

Two Prime data shows post-meeting weakness dominates, even as markets price a Fed hold and limited rate cuts ahead.

What to know:

• Bitcoin has fallen after seven of eight 2025 FOMC meetings, highlighting a consistent “sell the news” pattern despite varying policy outcomes.
• Futures markets price just one 25 bps cut this year, while rising oil prices and geopolitical tensions risk keeping inflation elevated and limiting Fed flexibility

UK lawmakers urge ‘immediate moratorium’ on crypto political donations

1 hour ago

Powell's comments on oil, inflation are likely to guide bitcoin traders

1 hour ago

Bitcoin’s rally runs into 'sell the news' risk ahead of Fed decision

2 hours ago

Bitcoin holds steady at $74,000 as traders turn cautious before Fed meeting

2 hours ago

Bitcoin is stuck below $75,000 even after landmark SEC, CFTC crypto rules

3 hours ago

Bitrefill accuses North Korea-linked Lazarus hacker group for compromising 18,500 purchase records

5 hours ago

U.S. SEC issues first-ever definitions for what crypto assets are securities

16 hours ago

Stratton wins Illinois Senate primary, defeating crypto-backed Krishnamoorthi

9 hours ago

Mastercard's $1.8 billion deal 'a clear answer' to a massive shift in the global payment war

17 hours ago

Arizona Attorney General files criminal charges against prediction market Kalshi

19 hours ago

Senator Tim Scott says market structure negotiations are advancing

15 hours ago

In this article

BTCBTC$72,474.13◢1.70%