Price Dips Below $80,000 on Macroeconomic Headwinds

Bitcoin traded near $79,632 at 8:05 a.m. ET Thursday, up roughly 2% from a day earlier but down $21,900 from its price one year ago, after slipping below $80,000 as oil prices recovered and the Bank of England raised interest rates by a quarter point.

The cryptocurrency held above $80,000 through Wednesday afternoon and overnight, peaking just under $80,900 around 5 p.m. ET Wednesday before the Thursday morning decline. Bitcoin’s $79,632 level represents a 5% gain above the $75,600 price on election night, November 4.

Oil drove the reprieve Wednesday. Brent crude and West Texas Intermediate both fell more than 8% on Wednesday to settle at their lowest level since August 31. Brent crude futures rose 1.6% to $96.15 per barrel Thursday morning, while WTI added 52 cents to $88.64.

Giovanni Staunovo, a UBS commodity analyst, attributed the modest oil recovery to ongoing Middle East tensions. “The situation in the Middle East is still unresolved and that’s why there is some modest recovery in prices at the moment,” Staunovo said.

The Bank of England’s Monetary Policy Committee voted 8-1 Thursday to raise Bank Rate by a quarter point to 4%, its first hike in more than three years. Catherine Mann, a committee member, dissented, pushing for a half-point move instead. The central bank cited U.K. inflation expected to rise to around 5% by the middle of next year, citing energy prices tied to a conflict “now in its ninth month.” Energy has been the main channel from the Iran war into inflation and interest rates; cheaper crude eases pressure on the Federal Reserve.

U.S. spot bitcoin ETFs took in net $74.6 million Wednesday, ending a three-session run of outflows totaling about $1.16 billion. Fidelity’s FBTC drew $236.7 million, while BlackRock’s IBIT saw a $201.2 million outflow.

Bitcoin’s market cap stood at $1.60 trillion with $35.2 billion in trading volume over the past day. The cryptocurrency remains down 37% from its all-time high of $126,080.

Miner Activity and Broader Market Conditions

Bitcoin miner Riot Platforms sold 20,264 bitcoin this year to fund AI data centers, leaving the company with 2,418 BTC remaining.

U.S. stock futures turned mixed Thursday morning. Dow futures rose 0.5%, S&P 500 futures added 0.1%, and Nasdaq-100 futures dropped 0.5%.