Bitcoin Drops Below $71K as Fed Outlook and Oil Surge Weigh on Crypto
Bitcoin fell sharply on Thursday, dropping below the $71,000 level as investors reacted to a hawkish Federal Reserve stance and rising oil prices driven by escalating tensions in the Middle East.
The world’s largest cryptocurrency declined 4.2% to $70,817 during early trading. This marks a notable pullback after Bitcoin traded above $74,000 in the previous session and briefly approached $76,000 earlier in the week.
Fed Signals and Inflation Risks Pressure Crypto Markets
Digital assets came under pressure after the Federal Reserve kept interest rates unchanged but warned of persistent inflation risks. Policymakers highlighted that rising energy prices could slow the path toward lower inflation and delay potential rate cuts.
The Fed also raised its inflation forecast for 2026 to 2.7%, up from 2.4%, signaling concerns that price pressures may remain elevated for longer than expected.
Oil Price Surge and Geopolitical Tensions Add to Market Stress
Crude oil prices surged above $110 per barrel and continued to climb in Asian trading after Iran launched attacks on key energy facilities in the Middle East. The escalation followed earlier strikes on Iran’s South Pars gas field.
Higher oil prices boosted bond yields and strengthened the U.S. dollar, both of which typically weigh on cryptocurrencies. As a result, Bitcoin and other digital assets faced increased selling pressure.
Global equity markets also reflected risk-off sentiment, with U.S. stocks closing lower and Asian markets trading in negative territory.
Kraken Delays IPO Amid Weak Crypto Market Conditions
Crypto exchange Kraken has reportedly postponed its plans for a multibillion-dollar initial public offering due to challenging market conditions.
The company had confidentially filed for a U.S. listing in late 2025 but is now expected to delay its IPO until market sentiment improves. The decision reflects broader weakness in the crypto sector, including declining asset prices and reduced trading activity.
Kraken was last valued at around $20 billion after raising $800 million, underlining its scale despite current market headwinds.
Altcoins Decline as Market Weakness Broadens
Losses extended across the broader cryptocurrency market. Ethereum, the second-largest digital asset, dropped 6% to around $2,193.
XRP fell 3.5%, while Solana and Polygon each declined about 4%. Cardano recorded a sharper drop of 6%, and Dogecoin also slipped roughly 5%.
The widespread declines highlight ongoing weakness in the crypto market as macroeconomic uncertainty continues to weigh on investor sentiment.
