NEW YORK — Bitcoin traded lower on Tuesday, hovering near $63,482 after declining about 0.67 percent, or roughly $429, as investors positioned ahead of a key U.S. inflation report and responded to renewed pressure from higher oil prices tied to Middle East developments.

The cryptocurrency spent much of the session testing levels just above $63,000 after failing repeatedly in recent days to sustain moves above $65,000. Trading remained cautious across digital assets, with ether also posting declines as risk appetite softened.

Market participants pointed to several overlapping factors. Optimism about a rapid resolution to disruptions in the Strait of Hormuz faded after signals that reopening the vital oil transit route was not imminent. That development helped push crude prices higher, including Brent futures moving above $89 a barrel in some sessions, raising concerns about renewed inflationary pressure.

Higher energy costs complicated the outlook for Federal Reserve policy just as traders prepared for the release of the Consumer Price Index data. Last week's weaker-than-expected U.S. jobs figures had already reduced the perceived likelihood of a near-term rate increase, but the combination of rising oil and the approaching inflation print kept many investors on the sidelines.

U.S. spot Bitcoin exchange-traded funds recorded net outflows of approximately $144 million to $145 million on Monday, ending a multi-day streak of........

© International Business Times