Bitcoin (BTC) surged this week, briefly reclaiming the $87,000 level, driven by easing concerns over a potential US military intervention in the Middle East—even as regional tensions remained far from resolved—and a sharp drop in oil prices.
The rally also translated into roughly a ¥1 million gain in yen terms, marking a sharp reversal from the softness seen the week before.
The rally was triggered by reports that President Trump would hold off on strikes against the Iran-backed Houthi militia in Yemen, which eased concerns over geopolitical risk and drew capital back into risk assets. Adding to the momentum, an increase in Saudi Arabian oil shipments sent crude prices—which had been trading near a four-month high—down nearly 5% at one point. With the surge in oil prices cooling off, concerns about renewed inflation, delayed Fed easing, and rising mining costs all eased in tandem, fueling a wave of buying back into the market.
That rebound proved short-lived, however. Profit-taking took hold heading into the weekend, and the market reversed lower. Compounding the pressure was a security breach at crypto exchange Bitget, which triggered wider concerns about exchange risk management and the possibility of further leaks, weighing on investor sentiment. The unwinding of short-term long positions built up during the rally added further downward momentum.
In the end, this week's action saw a sharp rally driven by improving macro conditions, followed by renewed caution around exchange risk that left the market facing resistance on the upside.
