After retreating to the $69,000 area in the early US morning hours on Wednesday, bitcoin has quickly risen to nearly $71,000.
Other crypto assets including ether (ETH), solana (SOL) and XRP saw the same sharp moves higher.
The gains appeared to be coming as crude quickly reversed most of the session’s big gains, falling $3 a barrel. barrel in a matter of minutes. At press time, WTI crude futures for April were at $85, up 2% for the day.
Crude’s drop also benefited stocks, with the Nasdaq edging slightly lower to a 0.5% gain in early US trade.
Crypto-related stocks were mixed, with Strategy ( MSTR ), Galaxy Digital ( GLXY ) and Bullish ( BLSH ) making modest gains, while Coinbase ( COIN ) and eToro ( ETOR ) were slightly lower.
With the ongoing war against Iran, risk markets this week have been mostly driven by oil price action. Stocks and crypto fell on Sunday night as oil rose to $120, but then rallied as oil quickly retreated.
Fresh inflation data
Wednesday’s February CPI report was in line with economists’ forecasts, up 0.3% month-on-month, putting 12-month inflation at 2.4%. However, next month could present a very different picture due to the outbreak of the US-Iran war, raising the question of whether the Federal Reserve will respond to the temporary shock or take a more hawkish stance after being caught off guard during the last inflation cycle.
Stephen Coltman, head of macro at 21shares, says the Fed’s choice will be critical, noting that investors will be watching next week’s Fed meeting closely for signs of how officials plan to respond.
As for bitcoin, the surge in next month’s data is likely “already baked in the cake,” he said.
