Bitcoin Holds Above $70K as Market Volatility Persists
Bitcoin stabilized above the $70,000 level on Friday after briefly dropping below $69,000 in the previous session. The recovery comes as volatile oil prices and uncertainty around Federal Reserve policy continue to weigh on investor sentiment.
The world’s largest cryptocurrency was up 0.7%, trading at $70,383.0 as of 09:04 ET (13:04 GMT).
Oil Price Swings Trigger Market Volatility
Bitcoin had fallen to a low of $68,814.4 on Thursday, as a sharp spike in crude oil prices led to a broader selloff in risk-sensitive assets.
However, oil markets later stabilized after efforts by the U.S. and its allies to ease supply concerns.
Policy Moves Help Calm Energy Markets
Scott Bessent stated that the U.S. may allow sanctioned Iranian oil already at sea to enter global markets. He also noted that further releases from strategic reserves remain an option if needed.
At the same time, Benjamin Netanyahu indicated that Israel would avoid further strikes on Iranian energy infrastructure, reducing fears of deeper supply disruptions.
Oil Prices Remain Elevated Despite Pullback
Brent crude traded near $108 per barrel on Friday, easing from earlier weekly highs. This pullback helped improve overall market sentiment.
Despite the decline, oil prices remain significantly higher than pre-conflict levels, when Brent was trading around $70 per barrel.
Fed Outlook Continues to Pressure Crypto
The Federal Reserve kept interest rates unchanged this week but signaled that rising energy costs could increase inflation. This has led investors to delay expectations for potential rate cuts.
Higher-for-longer interest rate expectations typically reduce demand for risk assets such as cryptocurrencies, contributing to recent price volatility.
