Daily Market Update: Bitcoin Can’t Catch a Break as Middle East Tensions Hit Stocks and Crypto
TLDR
Bitcoin is on track for its fifth straight weekly loss, last seen in 2022
BTC is trading below $67,000, down around 3% this week
Middle East tensions have pushed the U.S. dollar to 97.7 and oil to $65
U.S. stock futures edged higher Thursday, led by Nasdaq futures up 0.3%
Walmart reports earnings Thursday as a key read on consumer health
Bitcoin is heading toward its fifth consecutive weekly loss as rising Middle East tensions weigh on crypto markets. U.S. stock futures, meanwhile, are pointing modestly higher ahead of Walmart earnings.
As of Thursday, Bitcoin was changing hands below $67,000, down roughly 3% on the week. A close in the red would mark its longest weekly losing streak since March to May 2022.
Bitcoin peaked near $126,500 in October. It has since fallen more than 50%, with prices dropping as low as $60,000.
The monthly picture is just as bleak. Bitcoin has posted five straight monthly losses since October, making it the second-longest monthly losing streak on record. Only a six-month slide from 2018 to 2019 was longer.
Against gold, Bitcoin has now underperformed for seven consecutive months — its longest stretch on record against the precious metal.
Middle East Tensions Drive Dollar and Oil Higher
Geopolitical pressure is adding to Bitcoin’s woes. Reports say the U.S. has assembled its largest concentration of air power in the Middle East since the 2003 Iraq War.
President Trump has not made a final decision on whether to launch strikes on Iran. Prediction platform Polymarket puts the odds at 27% before the end of February.
The uncertainty has sent the U.S. dollar index to 97.7, its highest point since February 6. WTI crude oil climbed to $65 from a Wednesday low of $62.
A stronger dollar and higher oil prices tend to push risk assets like Bitcoin lower. These macro pressures are compounding an already weak technical setup for the cryptocurrency.
Stock Futures and Fed Minutes in Focus
U.S. stock futures were leaning higher Thursday morning. S&P 500 futures rose 0.2%, Nasdaq 100 futures gained 0.3%, and Dow futures were near flat.
Investors were working through minutes from the Federal Reserve’s January meeting. The minutes showed policymakers are divided, with some raising the possibility of rate hikes due to persistent inflation.
Despite that, market expectations for two rate cuts by the end of 2025 remained largely intact. Traders are also watching weekly jobless claims and pending home sales data due Thursday.
Walmart is reporting before the market opens, with investors using the results to gauge the health of the American consumer. Tariffs are also back in the spotlight after the Trump administration criticized a New York Fed report showing U.S. consumers and businesses are absorbing the cost of tariffs.
Bitcoin’s five-week losing streak, if confirmed at Friday’s close, would be one of its longest sustained downturns since the 2022 bear market.
