Three Days of Selling Bring Bitcoin Back to $70,000

Bitcoin got to $76,000 on Tuesday. By Friday it was back near $70,500. Three days of selling wiped out most of what had been a genuinely encouraging stretch, and the reason was not hard to find. Oil moved higher again on Thursday after new developments out of the Iran war front hit energy markets, and that one data point tends to reset everything else right now.

The inflation read matters more than almost anything for where Bitcoin goes from here. Every time crude presses higher, the Fed’s window to cut rates gets smaller. Traders have basically written off March and April for any kind of easing, and June is looking shakier too. Bitcoin lives in that same liquidity environment as everything else, and the longer rates stay where they are, the harder it gets to argue for a meaningful move upward.

And yet $70,000 held. That is not nothing. Bitcoin was the first asset to price this conflict because it trades on weekends, took an 8.5% hit when the US-Israel strikes happened on a Saturday at the end of February, and has since climbed back and then some. Against equities, gold, and pretty much every major altcoin, it has held up better across the three weeks since the war started. That kind of resilience in a rough tape does build a case, even if it is a slow and uncomfortable one to make.

The week also had a sting in the tail for institutional flows. ETF products tied to Bitcoin had been recovering through early March, pulling in money for several consecutive sessions. Then Wednesday happened, and roughly $150 million came back out. That reversal was a reminder that the money coming into these products is not patient capital right now. It is tactical, and it responds quickly to headlines.

Where things go from here runs through oil and diplomacy. Neither of those is easy to forecast.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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