Bitcoin The broader cryptocurrency market saw a significant price rally on Friday after major economies announced a joint effort to increase oil supplies through the now-disrupted Strait of Hormuz.
BTC, the largest cryptocurrency, jumped to $70,800, up more than 1% on the day, extending its rebound from an overnight low of $68,900, according to CoinDesk. Other major coins including ethereum (ETH), XRP (XRP) and solana (SOL) posted smaller gains of less than 1%, trailing Bitcoin.
West Texas Intermediate (WTI) crude fell nearly 2% to $93.80, with Brent crude posting a similar drop, after Britain, France, Germany, Italy, the Netherlands and Japan said they would take steps to stabilize energy markets and work together to ensure safe passage through the Strait of Hormuz. In a joint statement issued by Prime Minister Keir Starmer’s office, the leaders condemned Iran’s attack and urged it to cease its actions immediately.
On Thursday, U.S. Treasury Secretary Scott Bessant said the United States may soon lift sanctions on Iranian tankers and may release crude from its Strategic Petroleum Reserve.
Traders have lowered expectations for a rate cut from the U.S. central bank as it signaled heightened uncertainty about the outlook for economic growth and inflation earlier this week. This leaves cryptocurrencies and traditional risk assets largely exposed to oil price fluctuations.
The latest drop in oil prices, while positive, does not end uncertainty as military conflicts in the Middle East continue. WTI remains close to near-term support at $92.00 and remains well above pre-war valuations.
“Currently, WTI crude oil continues to hold an area of ​​support that appears to be increasingly important. This level is very consistent with previous highs and short-term trends. As long as oil holds that support and the trend continues higher, it will likely maintain an upward bias,” Mott Capital Management said in an email to subscribers.
The company added that the oil options market is positioned to suggest higher levels are possible.
Another market that Bitcoin traders may want to keep an eye on is the S&P 500, Wall Street’s benchmark stock index.
The index closed below its key 200-day simple moving average (SMA) on Thursday – the first such move since last May – signaling a shift in bearish momentum. A potential increase in risk aversion in the stock market could spread to cryptocurrencies and broader financial markets.
