Bitcoin tumbled 3.5% Wednesday, testing $60,000 support, as geopolitical tensions and corporate selling combined to pressure the cryptocurrency.
The sell-off was fueled by the breakdown of the U.S.-Iran memorandum of understanding, which sent Brent crude oil surging from $68 to $74. Higher energy costs have reduced expectations for near-term Federal Reserve rate cuts, with traders now pricing a 69% chance of hikes by September.
Compounding the pressure, MicroStrategy (MSTR) disclosed $216 million in Bitcoin sales outside its core monetization program. The news sparked fears of persistent selling, as the company manages $1.76 billion in annual dividends and $3.8 billion in convertible debt.
Global economic stress is also rising. Japan's 10-year government bond yield hit a 30-year high, while U.S.-Spain trade tensions added to uncertainty. Meanwhile, India's central bank is pushing for stricter crypto prohibitions.
Bitcoin bears remain in control, with a retest of the $60,000 support level increasingly probable.