Bitcoin rises to $77,000 ahead of Fed decision as oil tops $111

Bitcoin traded around $77,000 as markets awaited the Federal Reserve's policy announcement, while Brent crude pushed above $111 a barrel amid reports the United States may extend a naval blockade of Iranian ports. The mix of geopolitical risk and central-bank uncertainty left risk assets subdued and energy markets bid.

The move in oil followed reporting that U.S. President Donald Trump instructed aides to prepare for a prolonged blockade of the Strait of Hormuz, a development Reuters said could prolong Middle East supply disruptions; June Brent was quoted near $111.78 in early trade. Bitcoin, meanwhile, oscillated in the $76k–$77k range after recent intraday rallies and pullbacks, with derivatives expiries and ETF flows contributing to intraday volatility.

Market reaction was uneven: Asian equities softened and major indices gave back some gains as investors balanced hopes for a benign Fed outcome against rising oil-driven inflation risks. Cryptocurrency markets showed muted net movement for Bitcoin even as energy prices climbed; traders cited the Fed meeting and fresh geopolitical headlines as the main near-term catalysts. Cross-asset volatility increased as yields and commodity prices adjusted to the news flow.

In the broader economic context, a sustained disruption to shipping through the Strait of Hormuz would keep upward pressure on global fuel costs and could feed through to consumer prices, complicating central bank policymaking. Fed officials have signalled they are watching energy developments and incoming data, meaning oil shocks can influence the timing of any future rate adjustments. Reporting from major wire services confirms that the blockade and stalled diplomatic efforts remain central to price dynamics.

Analysts say near-term direction depends on the Fed's language and any further escalation or de-escalation around Hormuz. If oil stays elevated, markets may push out expectations for rate cuts, weighing on risk assets; conversely, signs of resumed shipping and lower crude could restore risk appetite and support Bitcoin and equities. Traders will be watching Fed communications, subsequent macro releases and any diplomatic developments for clearer signals.