Bitcoin traded mostly flat on Friday after two days of sharp price swings. Rising oil prices, driven by fears of escalating tensions between the US and Iran, added pressure to global markets. As a result, Bitcoin remained nearly unchanged over the past seven days and could end the month lower for the first time since July.
Bitcoin stayed mostly above $81,000 but struggled to break past $81,600. At 1:30 p.m. EST, it traded just above $81,500, showing little change over the previous 24 hours. Its market capitalization stood at $1.64 trillion, down nearly 3% over the past 30 days.
Meanwhile, Bitcoin liquidations remained near $25 million as long traders faced further losses for a second consecutive day. Long positions accounted for 63% of total liquidations. Across the broader cryptocurrency market, liquidations reached nearly $255 million, including about $163 million in long positions.
Oil prices also added to market concerns. Despite the Trump administration’s recent efforts to lower energy costs, US benchmark West Texas Intermediate (WTI) crude touched $100 a barrel on Friday. Meanwhile, global benchmark Brent crude reached $117 a barrel.
The sharp rise in oil prices has renewed concerns about inflation and the Federal Reserve’s next move. Higher inflation could strengthen the case for interest rate hikes, which often put pressure on cryptocurrencies and traditional stocks.
Analysts See Bitcoin’s Pullback as Healthy Consolidation
Broader market concerns have added to the pressure on Bitcoin. A report said Thursday’s market sell-off reflected growing doubts about the long-term returns from artificial intelligence investments.
Major technology companies continue to spend heavily on AI infrastructure. However, their investments have yet to deliver revenue gains at the same scale. This has led investors to question whether current market valuations can hold.
Despite these concerns, Mitchell Askew, head of Blockware Intelligence at Blockware, described Bitcoin’s recent price action as healthy consolidation. Bitcoin has traded below $82,000 in recent weeks, but Askew believes the market has already absorbed much of the selling pressure.
Askew said Bitcoin’s ability to hold its range during high bond yields and a reassessment of AI stocks points to fewer sellers. He added that Friday’s decline reflected a broader move away from risky assets rather than a Bitcoin-specific problem.
He also pointed to falling bond yields as a potential positive signal. According to Askew, the decline suggests markets are starting to anticipate a Federal Reserve response. Historically, shifts toward easier financial conditions have supported Bitcoin’s performance.
Askew also expects Bitcoin to gain after the upcoming US elections. He noted that the cryptocurrency has performed well after each of the last three election cycles.
“We’re confident the market is in an uptrend here,” Askew said. He described the drop below $82,000 as a pullback within a base that has been building since the summer. He expects Bitcoin’s price to move higher as that pattern develops.