Bitcoin slipped slightly below the $70,000 level on Thursday but remained relatively stable as investors adopted a cautious stance amid rising geopolitical tensions and surging oil prices. The renewed spike in energy markets has increased uncertainty across global financial markets.
The world’s largest cryptocurrency, Bitcoin, was last trading about 0.7% lower at $69,454 at 02:14 ET (06:14 GMT). Despite the decline, Bitcoin appears to be consolidating near the $70,000 level as markets assess the impact of recent geopolitical developments.
Oil prices surge again, raising inflation concerns
Energy markets have been a key driver of global risk sentiment. Brent crude climbed back above $100 per barrel after pulling back earlier from a spike near $120 earlier in the week, which marked its highest level in almost two years.
The latest escalation in the Middle East included attacks on two fuel tankers in Iraqi waters and strikes on commercial vessels traveling through the Strait of Hormuz, one of the world’s most important oil shipping routes.
The Strait of Hormuz handles roughly one-fifth of global oil shipments, and tanker traffic has slowed significantly due to growing security risks.
Higher energy prices have revived concerns about global inflation just as central banks had started considering potential interest rate cuts. Analysts warn that if oil prices remain above $100 per barrel for an extended period, it could complicate the policy outlook for the Federal Reserve and put pressure on risk-sensitive assets such as cryptocurrencies.
Bitcoin has recently shown strong correlation with broader risk assets. Traders remain cautious that another inflation shock could reduce liquidity in financial markets and weigh on crypto prices.
Investors watch key US economic data
Market participants are also waiting for important U.S. economic releases that may provide clues about the Federal Reserve’s next policy moves.
Weekly U.S. jobless claims data is expected later on Thursday, while the Personal Consumption Expenditures Price Index (PCE) — the Fed’s preferred measure of inflation — is scheduled for release on Friday.
The data will be closely monitored for signals about inflation trends and the timing of possible interest rate cuts.
Altcoins remain mostly stable
Most alternative cryptocurrencies traded with limited movement as the broader crypto market remained cautious.
Ethereum, the second-largest cryptocurrency by market value, edged 0.2% higher to $2,027.84. Meanwhile, XRP declined around 1% to $1.37.
Solana slipped roughly 0.5%, while Cardano and Polygon remained largely unchanged.
Among meme tokens, Dogecoin moved slightly lower, falling about 0.2% during the session.
