Bitcoin reversed overnight losses, surging past the $70,000 mark. The cryptocurrency saw a sharp ascent to nearly $71,000 after trading near $69,000 earlier. This upward movement mirrored gains in other major crypto assets like ether and solana.
The rally appears to be linked to a significant drop in crude oil prices, which reversed substantial session gains. West Texas Intermediate crude futures for April trading at $85, up 2% for the day, saw a $3 per barrel decline in minutes.
This oil price correction also positively impacted stock markets, with the Nasdaq shifting from a slight decline to a 0.5% gain. Crypto-related stocks showed mixed performance, with some posting modest advances while others saw slight dips.
Fresh inflation data released Wednesday showed the U.S. Consumer Price Index (CPI) rising 0.3% month-over-month, aligning with forecasts and maintaining a 2.4% 12-month inflation rate. However, the ongoing conflict with Iran introduces uncertainty for future inflation reports. Analysts suggest the Federal Reserve's response to potential price shocks will be closely watched, with rate cuts unlikely at the upcoming March or April meetings.