Bitcoin's Surprising Reaction to Trump's Iran Threats and Rising US Margin Debt

Bitcoin’s unusual rebound followed new concerns tied to U.S. threats involving Iran and rising U.S. margin debt. The cryptocurrency dipped to about $62,400 during the day before recovering most of its losses and moving back above $64,000. The rebound stood out because it came despite reports that typically pressure risk assets, including escalated Middle East tensions and growth in U.S. margin borrowing. Axios reported that the Trump administration conveyed to Israel plans to send “dozens more” refueling planes ahead of a potential “massive offense” against Iran, with possible strikes targeting infrastructure such as power plants and nuclear sites. Separately, the Kobeissi Letter said U.S. margin debt rose by more than $86 billion in June to a new record of $1.5 trillion. Bitcoin remained below a local peak of $65,600 after June CPI. The market appeared fragile despite the bounce.