Bitcoin steady at $78k amid M.East tensions, rate hike jitters

 Bitcoin moved slightly higher on Monday, steadying after declining last week as markets parsed worsening clashes in the Middle East and mounting expectations that the Federal Reserve will hike interest rates this week. 

Anticipation of a potential vote on the Clarity Act, plus more major central bank meetings beyond the Fed, also kept crypto traders to the sidelines. 

The world’s largest crypto rose 1.4% to $77,959.7 by 09:39 ET (11:39 GMT), after losing some 3% last week. 

Broader crypto prices also advanced slightly on Monday, but remained rangebound below recent highs amid a swarm of uncertainties for the sector. U.S. regulatory uncertainty also came back into play before a potential September 15 Congressional vote on the Clarity Act. 

M.East tensions worsen, oil prices surge 

Bitcoin steadied amid a broader downturn in other risk-driven markets, as investors were spooked by a renewed surge in oil prices as conditions in the Middle East worsened.

The U.S. and Iran remained at odds over the Strait Hormuz. But Yemen’s Iran-aligned Houthis now opened up a new front in the conflict by attacking Saudi Arabia and shipping in the Bal al-Mandab strait– a development that could further limit oil supplies in the Middle East. 

 Houthi actions could cut off another 4% to 5% of global supply, a trend that is likely to further underpin oil’s risk premium. This in turn spurred concerns over energy-driven inflation that could invite higher global interest rates– a trend that bodes poorly for Bitcoin and speculative markets.

Markets are increasingly pricing in bets that the Federal Reserve will hike interest rates by 25 basis points when it meets later this week, with several policymakers having flagged concerns over increasingly sticky inflation. Robust inflation prints for August, released last week, added to bets on a near-term hike. 

Possible Clarity act vote in focus as U.S. Congress returns 

In crypto, the focus is also squarely on whether U.S. Congress will proceed with a vote on the Clarity Act. Pro-crypto policymakers called for a vote on the long-delayed bill on Tuesday. 

The vote was set up just before the Senate dispersed for its August break. But it remained unclear whether the vote will proceed, and even whether Clarity can clinch the 60-vote threshold needed to pass. 

Policymakers, crypto industry insiders and banking lobbyists have continued to clash over the act’s treatment of stablecoin yields. Additionally, policymakers are also at odds over the act’s provision for setting up an ethical standard that could greatly limit officials from investing in crypto. 

Bitmine boosts Ethereum treasury to nearly $15 billion

Bitmine Immersion Technologies said Monday it expanded its Ethereum treasury to 5,956,378 ETH, adding 27,180 tokens over the past week. The holdings were valued at roughly $15 billion as of September 13, based on an ETH price of $2,513. The company said its stash now represents 4.9% of Ethereum’s total supply of 122 million tokens.

Bitmine also disclosed that as of September 7, it had staked 5,067,309 ETH, about 85% of its holdings at the time, worth an estimated $12.7 billion at the company’s stated price. The firm said its staking activity produced a 7-day annualized yield of 2.62%, implying projected annual staking revenue of $334 million.