Bitcoin climbed to an almost 2-week high on Friday as the war in the Middle East unsettled equity markets and pushed oil prices sharply higher, still near $100 per barrel.
The top cryptocurrency rose about 3 percent to around $71,500 around 4 PM Pakistan standard time (PKT), its strongest level since March 6, according to data from CoinGecko.
At the time of press, it has crossed $73,000, its highest level since the Gulf war started.
The gain partially reverses losses recorded after the US-Israel nexus waged war against Iran.
Market uncertainty has been fueled by risks to the Strait of Hormuz, a key corridor responsible for roughly 20% of global oil shipments. Meanwhile, US President Donald Trump said preventing Iran from obtaining nuclear weapons remains a greater priority than stabilizing oil prices.
His remarks pushed crude +9.2 percent to close above $100 per barrel for the first time since Ukraine’s fall. It also marked the benchmark’s largest single-day rise since the early stages of the COVID-19 pandemic.
An expert said prolonged oil shocks historically weaken Bitcoin because tightening global liquidity eventually pressures risk assets.
Investors currently expect limited long-term disruption to liquidity, assuming the oil shock will be temporary. However, sentiment could shift if the crisis intensifies.
Equity markets have already reacted negatively to potential energy disruptions. The S&P 500 fell 1.52 percent, the Dow Jones Industrial Average dropped 1.56 percent, and the Nasdaq Composite declined 1.73 percent.
Despite the equity sell-off, Bitcoin has remained relatively resilient. Strong investor interest in STRC, a preferred issuance linked to Bitcoin exposure that currently offers an 11.5 percent yield.
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