Bitcoin has recovered above $70,000, buoyed by rising oil prices following attacks on cargo vessels in the Gulf. Brent crude surpassed $101 a barrel and WTI neared $96.
Analysts suggest that with oil prices exceeding $100, a Federal Reserve pivot on interest rates is unlikely, potentially keeping Bitcoin range-bound through the first quarter. Despite geopolitical uncertainty, Bitcoin has outperformed gold and the Nasdaq-100 index since February 28.
Experts note that while initial reactions to sustained geopolitical instability can cause volatility, it can also reinforce structural demand for decentralized financial assets like Bitcoin. The ongoing conflict has paralyzed key shipping routes, raising inflation risks and tightening financial conditions.