Bitcoin ticks up as crypto continues to shrug off Middle East conflict

Bitcoin ticked up slightly on Thursday, as the crypto continued to be mostly unaffected by the developments in the Middle East.

The world’s largest cryptocurrency last traded 2% higher at $71,653.5 by 20:23 ET (00:23 GMT).

Bitcoin appears to be consolidating around the $70,000 mark as markets digest the ongoing war between the U.S., Israel, and Iran.

Crude surges back near $100/bbl, stokes inflation fears

Oil markets were the main driver of risk sentiment. Brent crude surged back above $100 per barrel after retreating from Monday’s spike near $120, its highest level in nearly two years.

The latest escalation in the Middle East included attacks on two fuel tankers in Iraqi territorial waters and strikes on commercial vessels moving through the Strait of Hormuz, a key global oil chokepoint.

The Strait of Hormuz handles roughly one-fifth of the world’s oil shipments, and tanker traffic has been nearly halted amid security concerns. Iran’s new leader Mojtaba Khamenei on Thursday said the strait will remain closed. 

Rising energy prices have revived worries about global inflation just as central banks were beginning to consider easing policy. Analysts say sustained oil prices above $100 could complicate the U.S. Federal Reserve’s path toward rate cuts and pressure risk-sensitive assets such as cryptocurrencies.

Bitcoin has often moved in tandem with broader risk assets in recent months, with traders wary that a fresh inflation shock could weigh on liquidity.

Investors also await key U.S. economic data for clues on the Federal Reserve’s policy outlook.

Weekly jobless claims edged lower last week, suggesting layoffs remain relatively subdued.

Initial claims for unemployment benefits totaled 213,000 in the week ending March 7, lower than expected and down from 214,000 the previous week, the Labor Department said Thursday. 

Continuing claims, which track the number of people receiving ongoing unemployment benefits, fell to 1.85 million in the week ending Feb. 28 from 1.87 million a week earlier. The continuing-claims data lag the initial claims figures by one week.

The latest jobless claims report follows last week’s weaker-than-expected employment data released by the Labor Department.

U.S. Personal Consumption Expenditures (PCE) price index -- the Fed’s preferred inflation gauge -- is scheduled for Friday.

Tether invests in Ark Labs to support programmable payments on Bitcoin

Tether, the company behind the world’s largest stablecoin USDT, said Thursday it has backed Ark Labs in a new funding round aimed at expanding programmable payments on the Bitcoin network.

The investment was part of a $5.2 million round for the startup, which is building infrastructure designed to enable faster transactions and application development on Bitcoin. With the latest raise, Ark Labs said its total funding now stands at roughly $7.7 million.

Ark Labs is developing Arkade, a system intended to function as an execution layer on Bitcoin. The platform is designed to help developers build services such as payment networks, lending applications and digital asset platforms on top of the blockchain.