Oil Price Surge Revives Inflation Concerns, Limits Bitcoin Upside

Bitcoin's price correction continues, with the cryptocurrency trading below $65,800 on Thursday after a modest decline in the previous day. Despite this pullback, US-listed spot Bitcoin Exchange Traded Funds (ETFs) continued to attract institutional inflows on Wednesday, marking the seventh consecutive day of gains.

The higher oil prices driven by the escalating US-Iran conflict and fresh Houthi threats have revived inflation concerns, limiting Bitcoin's upside. The 11th night of strikes on Iran has led to a sharp increase in oil prices, which is weighing on risk sentiment and reigniting inflation concerns.

Institutional demand for spot BTC ETFs has helped cushion the ongoing pullback, with an inflow of $68.99 million on Wednesday marking the seventh consecutive day of positive flows. However, Bitcoin's price remains capped beneath the 100-day EMA at $68,063 and the longer-term 200-day EMA at $74,348.