Bitcoin $BTC$70,584.30 And Friday saw notable price increases across crypto markets after major countries announced joint efforts to increase oil supplies through the currently disrupted Strait of Hormuz.
$BTCThe largest cryptocurrency soared more than 1% on the day to $70,800, extending its recovery from overnight lows below $68,900, according to CoinDesk data. Other major coins, including Ether (ETH) $XRP ($XRP) and Solana (SOL) lagged Bitcoin with small gains of less than 1%.
West Texas Intermediate (WTI) crude fell nearly 2% to $93.80, along with a similar decline in Brent crude, after Britain, France, Germany, Italy, the Netherlands and Japan announced they would take steps to stabilize energy markets and join cooperative efforts to ensure safe passage through the Strait of Hormuz. In a joint statement released by British Prime Minister Keir Starmer’s office, the leaders of these countries condemned the Iranian attack and called for an immediate end to its actions.
On Thursday, US Treasury Secretary Scott Bessent said the US could soon lift sanctions on Iranian oil tankers and release crude from the Strategic Petroleum Reserve.
Traders dialed back expectations for Fed rate cuts after the central bank expressed increased uncertainty about its growth and inflation outlook earlier this week. As a result, cryptocurrencies and traditional risk assets are mainly at the mercy of oil price fluctuations.
Although recent oil prices are positive, uncertainty remains as military conflicts continue in the Middle East. WTI is holding near recent support at $92.00 and remains well above its pre-war valuation.
“For now, WTI crude oil continues to hold an increasingly significant area of support, a level that is well aligned with historical highs and short-term trends,” Mott Capital Management said in an email to subscribers.
The company added that its positioning in the oil options market suggests higher level potential.
Another market that Bitcoin traders will want to keep an eye on is the S&P 500, Wall Street’s benchmark stock index.
The index closed below its all-important 200-day simple moving average (SMA) on Thursday, the first time this has happened since last May, indicating momentum has shifted to the bearish side. A potential increase in risk aversion in equities could spill over to cryptocurrencies and broader financial markets.
