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Bitcoin remains above $71,000, countering increasing dollar value, oil prices, and U.S. bond yields.
A stronger dollar, increasing Treasury yields, and stagnant tech stocks contrast with bitcoin’s fortitude amid geopolitical unrest.
Bitcoin surges even as oil prices remain above $100 a barrel. (Shutterstock modified by CoinDesk )
Key points:
- The U.S. Dollar Index has surpassed 100 for the first time since late November.
- Concurrently, the Nasdaq 100 proxy, the Invesco QQQ Trust, has declined by approximately 0.5%, while oil prices stay near $100 per barrel, conditions that generally pressure risk assets.
- Strategy (MSTR), the largest publicly traded corporate bitcoin holder, has increased by over 1 percent after purchasing around 11,000 BTC with funds from its perpetual preferred security Stretch (STRC).
Bitcoin climbed above $71,500 on Friday, outperforming U.S. stocks despite the dollar’s strength and oil prices remaining high as the conflict with Iran approached its third week.
A stronger dollar can tighten global financial conditions and typically impacts risk assets such as stocks and cryptocurrencies negatively. Elevated oil prices — with both Brent crude and West Texas Intermediate around $100 per barrel — amplify inflation worries and raise expectations for interest rate hikes. Increased rates also diminish the appeal of such investments.
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In spite of these macroeconomic and geopolitical challenges, including the Middle East conflict, bitcoin has shown remarkable resilience and stands as one of the top-performing macro assets since the war commenced on March 1. Historically, Fridays during this timeframe have recorded the largest cryptocurrency dropping by around 3%, a trend that has not occurred today.
The Dollar Index (DXY), which gauges the strength of the U.S. currency against a range of major global currencies, has exceeded 100 for the first time since late November. U.S. Treasury yields are also on the rise, with the benchmark 10-year bond yield exceeding 4.2%, indicating tighter financial conditions and elevated borrowing costs.
The Invesco QQQ Trust (QQQ), an exchange-traded fund that mirrors the Nasdaq 100 index, meanwhile, has remained relatively stable.
In crypto-related equities, Strategy (MSTR), the largest publicly traded corporate bitcoin holder, gained 1% prior to the commencement of formal trading. The company acquired approximately 11,000 BTC this week using proceeds from its perpetual preferred security Stretch (STRC).
Today marks the ex-dividend date for STRC, which has dipped slightly below its $100 par value to around $99.50.
At the same time, AI-repurposed bitcoin miners like IREN (IREN) and Cipher Digital (CIFR) opened slightly lower, while crypto exchange Coinbase (COIN) saw an increase of about 2%.
