Daily Market Update: Fed Minutes and Middle East Tensions Weigh on Markets

TLDR

• Bitcoin is heading for its fifth straight weekly loss, a streak not seen since 2022
• BTC is down roughly 3% this week, trading below $67,000
• Rising Middle East tensions have pushed the U.S. dollar index to 97.7 and oil to $65
• U.S. stock futures edged higher Thursday, with S&P 500 futures up 0.2%
• Walmart earnings are in focus as a key read on the American consumer

Bitcoin is heading for its fifth consecutive weekly loss as geopolitical tensions rattle markets and U.S. stock futures point cautiously higher ahead of Walmart earnings.

As of Thursday, Bitcoin was trading below $67,000, down around 3% on the week. If it closes lower, it will be the first five-week losing streak since March to May 2022.

Bitcoin hit an all-time high near $126,500 in October. Since then, it has fallen more than 50%, dropping as low as $60,000.

On a monthly basis, Bitcoin has now posted five straight monthly declines since October. That is the second-longest monthly losing streak on record, behind only a six-month slide from 2018 to 2019.

Against gold, Bitcoin has underperformed for seven straight months. That is its longest stretch of underperformance against the precious metal on record.

Tensions in the Middle East are adding pressure to crypto and other risk assets. The U.S. has reportedly built its largest concentration of air power in the region since the 2003 Iraq invasion.

Washington is said to be prepared to launch strikes on Iran, though President Trump has not made a final decision. Prediction market Polymarket puts the odds of strikes happening before the end of the month at 27%.

Geopolitical Pressure Hits Risk Assets

The uncertainty has pushed the U.S. dollar index up to 97.7, its highest level since February 6. WTI crude oil climbed to $65, up from a low of $62 on Wednesday.

A stronger dollar and higher oil prices tend to weigh on risk assets like Bitcoin. These factors are adding to what was already a technically weak setup for the cryptocurrency.

On the stock side, futures were leaning higher Thursday morning. S&P 500 futures rose about 0.2%, Nasdaq 100 futures climbed 0.3%, and Dow futures were roughly flat.

Investors were also digesting minutes from the Federal Reserve’s January meeting. The minutes showed a divided Fed, with some policymakers discussing possible rate hikes due to stubborn inflation.

Despite that, market expectations for two rate cuts by year-end stayed largely in place. Traders are also watching weekly jobless claims and pending home sales data due Thursday.

Walmart Earnings Take Center Stage

Walmart is reporting earnings before the market opens Thursday. The retail giant is closely watched as a gauge of how everyday American consumers are holding up.

Tariffs are back in the headlines too. The Trump administration publicly criticized the New York Federal Reserve after it released a report saying U.S. consumers and businesses are bearing the cost of tariffs.

Bitcoin’s fifth consecutive weekly loss, if confirmed, would extend one of its longest downturns in recent years.

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