Bitcoin rebounded above $71,000 Friday morning after U.S. Treasury Secretary Scott Bessent outlined potential measures to address surging oil prices, including waiving sanctions on Iranian oil at sea and releasing more from the Strategic Petroleum Reserve. The cryptocurrency’s recovery followed a volatile drop below $70,000 on Thursday as Brent crude oil hit $119 per barrel, triggering over $500 million in crypto liquidations. Analysts warn oil could reach $200 if the Strait of Hormuz faces extended closure, with higher energy prices potentially influencing Federal Reserve interest rate policy.
Bitcoin climbed to highs over $71,000 Friday morning, recovering from earlier weakness as efforts continued to stabilize oil supplies. The cryptocurrency is currently trading at $70,547, flat on the day after reaching an intraday high of $71,261.
The rally followed a volatile period where Bitcoin dropped below $70,000 Thursday as Brent crude surged to $119 per barrel amid attacks on Persian Gulf energy facilities. U.S. Treasury Secretary Scott Bessent suggested the U.S. could waive some sanctions on Iranian oil already at sea and mulled further releases from the U.S. Strategic Petroleum Reserve.
Nevertheless, market participants remain watchful of further disruptions, with analysts warning that oil could rise as high as $200 per barrel if the Strait of Hormuz faces extended closure. The broader market remains sensitive to oil price swings and geopolitical developments in the Middle East.
Bitcoin’s price movements are a second-order consequence of elevated energy prices, one analyst explained earlier in the month. Higher energy prices could encourage the Fed to keep interest rates higher for longer, which could “overall be bad for crypto,” GSR research analyst Carlos Guzman noted.
On prediction market Myriad, users expect oil prices to continue rising, placing a 63% chance on oil’s next move taking it to $120 rather than $55. Bitcoin’s outlook has turned bearish according to Myriad predictors, who place a 51% chance on its next move taking it to $84,000 rather than $55,000.
