The world’s largest cryptocurrency shed 1.2% to $70,437.1, bouncing back slightly from a session low of $68,814.4
Bitcoin dropped on Thursday, briefly declining below $70,000, as investors assessed a host of central bank decision and escalating tensions in the Middle East.
The world’s largest cryptocurrency shed 1.2% to $70,437.1 by 21:48 GMT, bouncing back slightly from a session low of $68,814.4. Bitcoin was trading above $74,000 in the prior session, having touched near $76,000 earlier this week.
Pressure on digital assets increased after some central banks such as the U.S. central bank, the European Central Bank, and the Bank of England held interest rates steady but signalled persistent inflation risks, particularly from energy markets. Policymakers warned that rising oil prices could complicate the disinflation path and delay potential rate cuts.
Traders moved to price out rate cut odds, with the CME FedWatch tool showing no more expectations for rate cuts this year.
The U.S. central bank also raised its 2026 inflation forecast to 2.7% from 2.4%, partly to reflect spiking oil prices.
Elsewhere, the Bank of Japan also stood pat on rates, and flagged that the future course of the Middle East war and crude oil prices could affect Japan’s inflation path.
Crude prices initially surged to near $120 a barrel on Thursday after Iran attacked several energy facilities across the Middle East following a strike on its South Pars gas field.
Cryptocurrencies, which have increasingly traded in line with macroeconomic trends, have come under pressure as higher oil prices lifted bond yields and supported the dollar.
U.S. stocks also closed lower on Thursday, as sentiment was weighed down by the continued fighting in the Middle East as well as weak housing market data.
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