Bitcoin held steady near $71,000 on Friday after falling below $69,000 in the previous session, as volatile oil prices and concerns over the Federal Reserve’s hawkish policy outlook weighed on risk appetite.
The world’s largest cryptocurrency slipped 0.3%, trading around $70,675 at 12:42 PM (Vietnam time). Earlier on Thursday, Bitcoin touched a low of $68,814 as risk assets came under pressure.
The main trigger was Brent crude oil briefly surging to $119 per barrel amid fears of supply disruptions in the Middle East. The sharp move in oil prices prompted investors to temporarily pull back from risk assets such as cryptocurrencies.
However, oil prices later eased to below $110 per barrel after the United States and its allies moved to calm supply concerns.
Statements from Washington and signals of easing regional tensions helped improve overall market sentiment. Meanwhile, the Fed’s hawkish stance continues to weigh on the crypto market.
The U.S. central bank kept interest rates unchanged and warned that energy-driven inflation could delay potential rate cuts.
In the altcoin market, Ethereum fell 2.1%, XRP declined 0.7%, while Solana, Cardano, and Polygon traded mostly flat. Among meme tokens, Dogecoin rose slightly by 0.5% while most altcoins remained subdued.