Bitcoin Steady Near $70K as Oil Rally Stokes Inflation

Key Moments

Bitcoin Trades Softly as Geopolitical Tensions Weigh on Sentiment

Bitcoin slipped below the $70,000 threshold on Thursday as market sentiment turned more cautious following another sharp move higher in oil prices tied to escalating tensions in the Middle East.

The world’s largest cryptocurrency was last down 0.7% at $69,454 by 02:14 ET (06:14 GMT). Despite the pullback, Bitcoin continued to find support, with price action suggesting a consolidation phase around the closely watched $70,000 level as traders monitored geopolitical and macroeconomic developments.

Oil Price Spike Reignites Inflation Jitters

Price action in crude oil markets was a key influence on broader risk appetite. Brent crude rebounded above $100 per barrel after having retreated from Monday’s spike near $120, which marked its highest level in nearly two years.

The renewed surge followed a further escalation in the Middle East, including attacks on two fuel tankers in Iraqi territorial waters and strikes on commercial vessels transiting the Strait of Hormuz, a critical corridor for global oil flows.

The Strait of Hormuz accounts for roughly one-fifth of worldwide oil shipments, and tanker movements have been nearly halted amid mounting security risks.

The climb in energy prices has brought inflation concerns back into focus just as central banks had started to contemplate loosening monetary policy. According to analysts, oil sustained above $100 per barrel could pose challenges for the U.S. Federal Reserve’s trajectory toward interest rate cuts and add pressure on risk-sensitive assets such as cryptocurrencies.

Bitcoin has frequently traded in line with other risk assets in recent months, with participants wary that another inflation shock could restrain liquidity conditions.

Macro Calendar: U.S. Data in Focus for Fed Outlook

Market participants are also tracking upcoming U.S. economic releases for further direction on the Federal Reserve’s policy stance.

Weekly jobless claims are scheduled for release later on Thursday, while the U.S. Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation measure – is due on Friday.

Altcoin Market Snapshot: Mixed but Subdued Moves

Against the backdrop of a risk-off tone, most major altcoins showed limited movement on Thursday.

World no.2 crypto Ethereum edged up 0.2% to $2,027.84, while world no. 3 crypto XRP declined 1% to $1.37. Solana slipped 0.5%, and both Cardano and Polygon traded largely unchanged. Among meme tokens, Dogecoin was 0.2% lower.