Bitcoin maintains $70,000 mark as rising oil prices and credit concerns lead to declines in stock markets.

U.S. President Trump stated that addressing Iran is a greater priority than oil prices, as crude oil increased by 10% on Thursday.

Bitcoin (BTC) price on Thursday (CoinDesk)

What to know:

• In a fluctuating market, bitcoin has managed to maintain the $70,000 mark despite other risk assets experiencing significant declines amid the situation in Iran.
• Oil prices surged by 10% and approached $100 per barrel, with President Trump showing minimal concern for escalating prices as Iran’s new supreme leader displayed no willingness to yield.
• Ongoing concerns regarding private credit are affecting the U.S. financial sector.

Safe-haven asset?

The market remains volatile, yet bitcoin BTC$69,873.58 is still holding above the $70,000 threshold despite a broader sell-off of risk assets.

As crude oil prices rise over 10% and approach $100 per barrel, concerns regarding the Hormuz Strait—a vital shipping lane for oil tankers—are contributing to the decline in stocks.

"Preventing Iran from advancing is a greater concern for me than oil prices," stated President Trump on Thursday. In parallel, Mojtaba Khamenei, in his first public address since his appointment as Iran’s supreme leader, indicated that the Strait of Hormuz should remain closed.

"It has become evident to everyone that the Strait is far from being manageable and likely impossible to control without significant concessions to Iran, military presence, or considerable military risks," remarked Quinn Thompson, founder of Lekker Capital. "The situation is precarious, and as pressures mount, volatility will escalate."

As noon approached on the East Coast, the Nasdaq index was hovering near session lows, down 1.6%, while the S&P 500 decreased by 1.2%.

Although overshadowed by the situation in Iran, ongoing concerns about a collapse in private credit remain significant. Morgan Stanley (MS) was the latest in a series of prominent financial institutions to halt redemptions, this time at its $8 billion North Haven Private Income Fund. Shares of Morgan Stanley fell by 4% on Thursday, leading losses in the financial sector. JPMorgan, Citigroup, and Wells Fargo also saw declines of approximately 3%.

In the private equity sector, KKR, Apollo Global, and Ares Management experienced drops of 3% to 4%.

Gold prices dipped by 0.6%, while the yield on the 10-year U.S. Treasury increased by three basis points to 4.23%.

Oil drives markets

According to James Butterfill, head of research at CoinShares, oil has emerged as the primary influencer of cryptocurrency prices. “The key factor in global asset valuation is no longer the labor market; it is oil and the geopolitical crisis surrounding it,” he stated in a report. He noted that the recent U.S. payroll report, which fell short of expectations, would typically have led markets to anticipate quicker rate reductions by the Federal Reserve; however, the response was subdued as investors concentrated on rising energy prices linked to the Middle Eastern conflict.

Despite the downturn on Thursday, bitcoin has shown considerable resilience amidst escalating geopolitical tensions and overall market unpredictability, remaining close to the $70,000 level as investors reevaluate global risks.

This resilience may be attributed to large investors increasingly seeking more than just exposure to bitcoin’s price, as noted by Dom Harz, co-founder of layer-2 blockchain BOB. “Institutions are looking for more than mere exposure to bitcoin and are actively searching for infrastructure that can unlock Bitcoin’s financial utility,” he noted, highlighting the growing interest in bitcoin-based financial applications that enable users to spend, save, and earn using the network.