In brief
- Bitcoin topped $71,000 Friday morning following the U.S. Treasury Secretary’s outlining of possible responses to soaring oil prices.
- 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.
- The rally followed a volatile period where Bitcoin dropped below $70,000 Thursday as Brent crude surged to $119 per barrel.
Bitcoin climbed to highs over $71,000 Friday morning, recovering from earlier weakness as efforts continued to stabilize oil supplies disrupted in the Strait of Hormuz.
The cryptocurrency is currently trading at $70,547, flat on the day according to CoinGecko data, after reaching an intraday high of $71,261 early Friday. The cryptocurrency's price bounce came after a tumultuous period where Bitcoin slipped below $70,000 on Thursday as Brent crude oil prices hit $119 per barrel amid attacks on Persian Gulf energy facilities, triggering over $500 million in crypto liquidations.
The news comes as U.S. Treasury Secretary Scott Bessent mulled responses to surging oil prices, including the lifting of sanctions on Iranian oil cargoes already at sea and a further release 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—a critical chokepoint for global energy supplies—faces extended closure.
The broader market remains sensitive to oil price swings and geopolitical developments in the Middle East, with the correlation between crypto and energy markets strengthening as institutional investors increasingly treat digital assets as part of broader risk portfolios.
Bitcoin’s price movements are a second-order consequence of elevated energy prices, one analyst told Decrypt 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 explained, noting that lower interest rates generally incentivize investors to shift capital toward riskier assets.
On prediction market Myriad, owned by Decrypt’s parent company Dastan, 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—down from highs of 65% earlier in the week.