By Caleb Monroe
Bitcoin steadied close to the $71,000 mark on Friday following a sharp intraday wobble that pushed the largest digital asset below $69,000 in the previous session. As of 01:42 ET (05:42 GMT) on Friday, Bitcoin was trading 0.3% lower at $70,675.7.
The retreat earlier in the week took the coin to a low of $68,814.4 on Thursday, when a sudden spike in crude oil prices prompted a widespread pullback in risk-sensitive assets. That move underscored how volatile energy markets can ripple through speculative assets, tightening risk appetite across financial markets.
Oil volatility exerted immediate pressure
Brent crude briefly surged to $119 a barrel on Thursday amid Middle East supply disruptions, a jump that corresponded with the sell-off in riskier assets including cryptocurrencies. The rally in oil was later pared as policymakers and allies sought to calm supply concerns. In a development that eased some market fears, U.S. Treasury Secretary Scott Bessent said Washington may permit sanctioned Iranian oil already at sea to reach global markets and added that additional releases from the Strategic Petroleum Reserve remained an option if intervention becomes necessary.
Israeli Prime Minister Benjamin Netanyahu also signalled restraint, stating that Israel would refrain from launching further attacks on Iranian energy facilities, which helped reduce the prospect of a deeper disruption to regional crude exports. Following those developments, Brent crude retreated below $110 a barrel later on Thursday and edged lower again in Asian trading on Friday, a movement that improved sentiment across broader markets.
Fed messaging keeps pressure on risk assets
Market participants also cited the Federal Reserve's stance as a weight on digital assets. The central bank kept interest rates unchanged this week, but its policymakers maintained a cautious tone and warned that inflation risks linked to higher energy prices could delay the timing of rate cuts. That outlook has continued to influence sentiment in cryptocurrencies, which have tended to move in step with broader macroeconomic trends this year.
Altcoins mostly under pressure
Friday saw losses across many leading altcoins amid the cautious environment. Ethereum fell 2.1% to $2,143.92, while XRP declined 0.7% to $1.43. Solana eased 0.3%, and both Cardano and Polygon were largely muted. Meme token Dogecoin bucked the broader downward trend with a modest gain of 0.5%.
Overall, the market's reaction illustrated how energy-price shocks and central bank communication can quickly reshape risk tolerance, with implications for crypto market flows and investor positioning.