Bitcoin Holds Above $78K as Oil and Geopolitics Weigh

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Bitcoin Advances but Faces Headwinds from Oil and Geopolitics

Investing.com – Bitcoin hovered near the $78,000 level on Friday, keeping its recent upward streak intact even as rising oil prices and geopolitical risks limited further gains.

The largest cryptocurrency was last up 0.9% at $78,256 by 09:42 ET (13:42 GMT). It had briefly pushed above $79,000 on Wednesday and was on track for a roughly 6% weekly increase, positioning it for a fourth consecutive weekly advance.

Persistent institutional demand continued to underpin the move. According to data from SoSoValue, U.S.-listed spot Bitcoin exchange-traded funds logged nearly $1 billion in net inflows over the past week, marking one of the strongest weekly tallies since January.

Cumulative net inflows across Bitcoin ETFs have now exceeded $58 billion, with total assets holding around or above $100 billion, highlighting the scale of institutional engagement in the asset.

Geopolitical Tensions and Oil Market Keep Risk Sentiment Fragile

Market risk appetite remained fragile as tensions in the Middle East persisted despite a three-week extension of a ceasefire between Israel and Lebanon.

Investors continued to focus on the Strait of Hormuz, described as a key artery for global oil supply, where the possibility of disruptions and ongoing military activity have added to uncertainty.

Brent crude prices stayed elevated, with the benchmark moving above $105 per barrel. The oil strength reinforced inflation concerns and weighed on risk-sensitive assets, including cryptocurrencies.

Despite these pressures, Bitcoin has displayed resilience in recent sessions. The token had rallied alongside other risk assets earlier in the week amid optimism related to ceasefire developments.

Broader markets showed caution. The U.S. dollar strengthened on Friday on safe-haven demand, while global equities traded mixed.

Adding to the geopolitical backdrop, a Reuters report noted that an internal Pentagon email laid out potential measures to penalize allies viewed as uncooperative during the U.S.-Iran conflict, which could include suspending Spain from key NATO positions.

Morgan Stanley Targets Stablecoin Issuers With New Money Market Product

Morgan Stanley Investment Management introduced a government money market fund designed for stablecoin issuers seeking to hold reserve assets in line with the GENIUS Act.

The vehicle, named the Stablecoin Reserves Portfolio and trading under the ticker MSNXX, is part of the Morgan Stanley Institutional Liquidity Funds trust. The fund is geared toward payment stablecoin issuers that require an eligible structure for the reserves backing their tokens, though Morgan Stanley said Thursday that non-issuers may also participate.

The portfolio’s objective is to preserve capital and sustain a stable $1 net asset value, while offering daily liquidity and current income. Its mandate limits investments to cash, U.S. Treasury bills, notes, and bonds with remaining maturities of 93 days or less, as well as certain overnight repurchase agreements backed by Treasury securities.

Altcoins Trade in a Narrow Range

Major alternative cryptocurrencies moved modestly higher in range-bound trading.