Hormuz Oil Shock Traps Bitcoin Below $80K as Powell Flags Inflation Comeback!

The Federal Reserve held rates steady at its latest FOMC meeting, but Chair Jerome Powell's warning that rising energy prices are reigniting inflation has cast a shadow over risk assets — Bitcoin included. Glassnode data places BTC's True Market Mean at roughly $79,000, and the price is currently pinned below that level, a zone historically associated with bearish macro dominance.

The Strait of Hormuz contagion angle is the macro thread tying it together: elevated oil prices flowing through eight major economies are feeding back into inflation expectations, reducing the Fed's room to cut and keeping the risk-off pressure on Bitcoin. Until energy prices ease or Powell signals a pivot, the True Market Mean acts as a ceiling, not a floor.

For BTC bulls, the single route through is a de-escalation in Middle East supply risk that breaks the oil-inflation feedback loop — absent that, the…