BlockBeats News, July 13th. Influenced by the weekend air strikes between the United States and Iran, the market saw an increase in risk-off sentiment. Bitcoin dropped over 1% since July 13th at 00:00 UTC, falling to around $63,000 at one point.

Meanwhile, Brent crude oil futures rose over 3%, approaching $79 per barrel. Market concerns that shipping in the Strait of Hormuz would be disrupted, leading to higher energy prices and inflation, thereby reducing the Fed's room for interest rate cuts, put pressure on risk assets such as crypto.

Taran Dhillon, Head of Digital Assets at Kula, stated that this week the crypto market will face a "tug of war" between macroeconomic data and the Middle East geopolitical situation. The upcoming CPI and PPI data from the U.S. will impact market expectations for the Fed's interest rate trajectory.

However, spot Bitcoin ETF and Ethereum ETF have seen eight consecutive weeks of net outflows, indicating a slight recovery in institutional demand. Moreover, the ongoing progress of the CLARITY Act is also expected to further improve expectations for digital asset regulation, providing support to the market.