Bitcoin remained close to $65,000 on Thursday as hopes of lower oil prices and easing inflation continued to support demand for riskier assets.
The cryptocurrency was trading at about $64,830, up 0.8% over the previous 24 hours and 1.3% over the past week, according to CoinDesk data. However, its gains came within a narrow trading range, suggesting the market is taking a cautious approach rather than entering a broad rally.
Ether was stronger, rising 2.1%, while most of the other major cryptocurrencies recorded only limited movement.
The support behind Bitcoin appears to be coming mainly from wider economic expectations rather than a fresh surge in crypto-specific demand. President Donald Trump highlighted strong employment, improved manufacturing figures and cooling inflation, while also suggesting that a deal to reopen the Strait of Hormuz could be possible.
A reopening of the strategic waterway would be expected to put pressure on oil prices. That could ease concerns about inflation and create room for both Treasury yields and the dollar to decline. Such a combination would generally be favourable for risk assets, and Bitcoin is trading as if some of those conditions could emerge.
However, the move remains dependent on several parts of the economic outlook falling into place. Lower oil prices would need to translate into reduced inflation expectations, which would then have to bring down real yields and the value of the dollar.
Bitcoin’s approximate 63% correlation with the S&P 500 also means that the performance of wider equity markets could be more important in the short term than crypto-native investment flows.
A less tense situation in the Middle East could improve overall appetite for risk. At the same time, it could reduce the safe-haven demand that helped support Bitcoin earlier in the summer.
Investors are therefore likely to focus on real yields and the dollar. If both move lower at the same time as oil prices, Bitcoin would have a clearer route above the upper end of its recent trading range.
If yields remain elevated, the broader economic argument for a Bitcoin move higher may remain unproven, leaving the cryptocurrency anchored near $65,000.
Binance remains the leading exchange in the cryptocurrency market. Its business has expanded beyond spot and derivatives trading to include real-world assets, payments, savings, yield products and wider financial services.
That broader expansion reflects the exchange’s move into several areas of the financial system, rather than relying solely on its traditional spot and derivatives operations.
