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Bitcoin has recovered to $64K — clawing back from the $62,600 low posted earlier today as renewed US-Iran fighting sent Brent crude up nearly 4% to a four-week high. The CoinDesk 20 index remains down 0.6% on the day, European equity benchmarks are off approximately 1%, and US index futures have slipped 0.3%. The Strait of Hormuz — which carried roughly one-fifth of global oil and gas supplies before the conflict — has been de-facto closed for 136 days. Fed rate-hike odds for July remain at 36% with the two-year Treasury yield holding at 4.28% as markets digest the CPI data alongside the ongoing Hormuz situation.The Hormuz Trade Still in Play — 136 Days Closed, Reopening Odds at 56%The restart of active US-Iran hostilities has revived the Nacho trade — "Not a Chance Hormuz Opens" — betting the strategic waterway remains shut regardless of periodic diplomatic signals. Tanker attacks have reduced Hormuz traffic to near zero, and the perceived odds of reopening by year-end dropped from 65% to 56% on prediction markets following the latest escalation. Traders assign near-zero probability to a reopening by month's end.The closure's direct market impact runs through oil prices. Brent at a four-week high partially reverses the peace trade that drove Bitcoin's recovery from its $58,000 late-June low — a recovery built on the assumption that oil would continue declining toward Citigroup's $60 year-end target as the Iran situation normalized. Bitcoin's recovery to $63,500 from the $62,600 low suggests the CPI data provided enough relief to offset the Hormuz oil pressure — but the sustainability of the move depends on whether the headline print is clean enough to durably reduce July hike expectations.Rate-Hike Odds at 36% — Two-Year Yield Holding at 4.28%Prediction markets still price a 36% probability of a Federal Reserve rate hike at the July 28-29 FOMC meeting — up from sub-20% following June's 57,000 payrolls miss. The two-year Treasury yield remains at 4.28%, holding the rate-hike trade that has historically pressured both Bitcoin and gold. The mechanism is direct: higher oil raises near-term inflation risk, pushing Treasury yields higher, increasing the opportunity cost of holding non-yielding assets, reducing demand for rate-sensitive risk assets across the board.Whether the CPI print is sufficient to push the 36% July hike probability meaningfully lower — toward the sub-20% levels that preceded the Hormuz re-escalation — is the specific question Bitcoin's $63,500 recovery is asking. A sustained move above $64,400 would signal the market has absorbed the CPI data constructively enough to resume the push toward $67,250. A fade back toward $62,600 would signal the Hormuz oil risk is overwhelming the CPI relief.June CPI — What the Data ShowedHeadline CPI decelerated to 3.8% year-over-year from April's 4.2% — the mechanical reflection of oil's decline during the ceasefire period that June data captured through June 30. Core CPI held at 2.9% year-over-year with monthly core at 0.2%, down from 0.3% — a modest but directionally constructive reading. The consensus had been built before this week's Hormuz re-escalation sent oil back toward $75 per barrel, meaning the June data captures a disinflationary oil environment that no longer exists in real time. Even with a soft print, the forward-looking inflation channel through oil is already reaccelerating as the data arrives.The Three Pillars of Bitcoin's Recovery — All Still Under PressureThe June recovery from $58,000 to $64,400 rested on three interlocking conditions: the ceasefire reducing Hormuz risk, oil declining from $92 toward $70, and payrolls missing badly enough to reduce rate-hike probability. All three remain compromised. The ceasefire has collapsed with Iran formally ruling out talks. Oil is at a four-week high. And the 36% July hike probability sits well above the sub-20% baseline that characterized last week's constructive positioning. Bitcoin at $63,500 is holding — for now — but the structural headwinds that produced the first-half correction have not been resolved. They have returned.