Bitcoin Holds Near $79,600 as Central Bank Moves and Oil Prices Weigh

Bitcoin price — Bitcoin traded near $79,600 on Thursday, giving back a portion of the previous day’s rally as the Bank of England raised interest rates and oil prices rebounded from a steep decline.

The price, up roughly 2% from Wednesday but still significantly below its level from a year ago, dipped below the $80,000 mark in early trading. The move followed a relief rally on Wednesday that was partly fueled by a sharp drop in crude oil prices, which eased inflation concerns. However, oil recovered some ground on Thursday, with analysts citing ongoing geopolitical tensions in the Middle East.

The Bank of England explicitly linked its decision to hike rates to energy prices, raising its benchmark rate by a quarter point to 4% in an effort to combat inflation. The move underscored the persistent global monetary policy headwind for risk assets like Bitcoin. Meanwhile, U.S. spot Bitcoin ETFs saw a net inflow of $74.6 million, breaking a three-day streak of outflows.

Market attention now turns to upcoming economic data, including the U.S. jobs report and Consumer Price Index reading, which will shape expectations for Federal Reserve policy. Bitcoin remains about 37% below its all-time high, with supply from miners, such as Riot Platforms’ ongoing sales, acting as a potential weight on the market.