Softer-than-expected U.S. inflation data released Tuesday initially lifted crypto markets, but escalating tensions between the United States and Iran offset those gains, leaving prices little changed. Bitcoin held steady at a three-week high as traders weighed competing signals. Cooler inflation figures typically bolster expectations of easier monetary policy, which tends to support risk assets like cryptocurrencies. However, geopolitical uncertainty in the Middle East can drive investors toward safer holdings, dampening appetite for volatile assets. The result was a market caught between optimism over the inflation report and caution over rising international friction. The standoff illustrates how macroeconomic and geopolitical forces can neutralize each other in the near term, keeping crypto prices range-bound. Market participants are likely to monitor further developments on both fronts to gauge the direction of the next move.
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