Bitcoin fell sharply on Thursday, dropping below $71,000, as investors assessed the Federal Reserve's hawkish stance alongside rising oil prices driven by escalating tensions in the Middle East.
The world’s largest cryptocurrency fell 4.2% to $70,817.4 by 10:25 (Saudi time).
Bitcoin was trading above $74,000 in the previous session, after touching nearly $76,000 earlier this week.
Traders reduce bets on interest rate cuts amid inflation risks
Pressure increased on digital assets after the Federal Reserve kept interest rates unchanged but pointed to persistent inflation risks, particularly from energy markets.
Policymakers have warned that rising oil prices could complicate the path to reducing inflation and delay potential interest rate cuts.
The central bank raised its 2026 inflation forecast to 2.7% from 2.4%, citing concerns that price pressures may persist.
Crude oil prices rose above $110 a barrel on Wednesday and continued their gains in Asian trading on Thursday after Iran attacked several energy facilities across the Middle East following a strike on the South Pars gas field.
Cryptocurrencies, which increasingly trade in line with macroeconomic trends, came under pressure as higher oil prices boosted bond yields and supported the dollar.
US stock indexes also closed lower on Wednesday, while Asian stocks declined in early trading on Thursday.
The Bank of Japan kept interest rates unchanged on Thursday and warned that the future course of the conflict in the Middle East and crude oil prices could affect the path of inflation in Japan.
Kraken postpones IPO plan due to challenging market conditions - CoinDesk
Cryptocurrency exchange Kraken has halted plans for a multi-billion dollar initial public offering due to challenging market conditions, CoinDesk reported.
The company, which secretly submitted a draft S-1 filing to the U.S. Securities and Exchange Commission in November, is now likely to delay its listing until market sentiment improves, according to the report.
This move comes amid a decline in cryptocurrency markets since late 2025, with weak asset prices and trading volumes weighing on valuations and investor appetite.
Kraken was last valued at $20 billion after raising $800 million, highlighting its size despite the challenging environment.
Cryptocurrency prices today: Altcoins also decline; Ether plunges 6%
Most alternative currencies also declined on Thursday, continuing their losses.
Ethereum, the world's second-largest cryptocurrency, fell 6% to $2,193.41.
The world's third-largest cryptocurrency, XRP, fell 3.5% to $1.47.
Solana and Polygon each fell by 4%, while Cardano plummeted by 6%.
Among the satirical symbols, Dogecoin dropped by 5%.
