Copper prices declined on Thursday, approaching their lowest level in about a week, after investors stepped in to buy the previous session’s dip and as industrial metals tracked the decline in technology stocks.

Traders in China — the world’s largest consumer of metals — were largely absent from the market due to the Lunar New Year holiday. Tom Price, an analyst at Panmure Liberum, said they “rarely leave large capital positions in the market” during the holiday period, adding that volatility tends to increase, which leads to dip-buying activity. “I think that will provide some support,” he said.

Brokerage firm Marex said in a note that the base metals complex is now taking its cues instead from the performance of technology stocks, particularly the Nasdaq index.

Copper inventories in London Metal Exchange warehouses rose for a twelfth consecutive day to reach 224,625 tons, the highest level in 11 months, with new inflows into warehouses in New Orleans and Kaohsiung.

US warehouses now account for around 18% of total copper available in exchange storage, while 538,122 tons remain in the US COMEX exchange.

“When inventories and copper prices rise together, there is something unusual happening,” Price said, adding that US copper consumption rates have declined over the past twelve months.

The London cash copper contract was trading at a discount of $97 per ton compared with the three-month futures contract, indicating no urgent need for immediate supply in the near term.

Peruvian equities upgraded on copper cycle support

Rising metals prices — driven by artificial intelligence demand and the recovery in global industry — led analysts at Oxford Economics to upgrade Peruvian equities to “Overweight” on Thursday.

The firm also maintained an “Overweight” rating on Brazil, based on expectations of interest rate cuts.

Analysts said Peru is best positioned to benefit from the copper cycle due to its heavy export reliance on the red metal, which is seeing strong demand driven by data center construction.

Although Chile is also a major copper producer, analysts pointed to downside risks including mine closures, strikes, and logistical bottlenecks, while keeping a “Neutral” rating.

In Brazil — which has a more diversified economy than its regional peers — analysts expect the anticipated rate-cut cycle to serve as a “powerful catalyst for local equity markets over the medium term.”

By contrast, Oxford Economics maintained an “Underweight” rating for both Mexico and Colombia, citing political uncertainty linked to trade negotiations between Mexico and the United States and Canada, in addition to the monetary tightening cycle in the Andean nation.

Meanwhile, the US dollar index rose by 0.2% to 97.8 points at 16:26 GMT, recording a session high of 98.07 and a low of 97.5.

During US trading hours, May copper futures were down 0.7% at $5.82 per pound at 16:14 GMT.

In recent trading sessions, Bitcoin fell sharply and dropped below $67,000 after the latest minutes of the Federal Reserve’s January meeting signaled a more hawkish stance toward interest rates and inflation. The move sent shockwaves through equity and cryptocurrency markets as traders reassessed expectations for US monetary policy and its impact on risk-based assets such as Bitcoin. The decline reflects growing investor caution amid uncertainty surrounding interest rates and broader economic conditions.

For many investors and analysts in equity research communities, the event highlights how macroeconomic policy decisions continue to influence digital assets such as Bitcoin despite these markets operating independently of traditional financial systems.

What happened to Bitcoin’s price

Bitcoin had previously traded above $68,000 but slipped below key support levels, trading around $66,000–67,000 as markets digested the Federal Reserve minutes. This represents a notable pullback from earlier gains this year when Bitcoin traded near significantly higher levels.

The minutes revealed that the Federal Reserve kept interest rates unchanged at 3.50 to 3.75 percent, but policymakers expressed concern that inflation remains elevated and suggested that future rate hikes could be necessary if price pressures do not ease. The tone surprised many market participants who had hoped for clearer signals toward rate cuts.

Higher interest rates tend to make riskier assets less attractive because investors can earn more from safer options such as bonds and Treasury yields. Bitcoin is often viewed as a speculative asset closely tied to broader market sentiment, so when interest rates rise or are expected to rise, Bitcoin’s price is typically affected negatively.

The importance of the Federal Reserve minutes for Bitcoin investors

Federal Reserve minutes provide important insights into how central bank officials view the economy and monetary policy strategy. Investors study these minutes to gauge future interest rate moves because rate changes affect liquidity and risk appetite across markets.

When the Federal Reserve signals a hawkish bias — meaning policymakers are prepared to keep interest rates higher for longer — investors reduce exposure to speculative assets and shift capital toward safer investments. Bitcoin’s drop below $67,000 reflects this shift in sentiment.

Short-term traders and institutional investors respond quickly to such signals by selling positions or hedging risk, further amplifying price volatility. For a crypto asset that does not generate dividends or interest, higher rates make other asset classes appear more attractive by comparison.

Impact on cryptocurrency market sentiment

Bitcoin’s decline also weighed on sentiment across the broader cryptocurrency market. Other major digital assets such as Ether and Ripple posted losses during the same period as investors pulled back from risk-exposed assets.

As the largest and most closely watched cryptocurrency, Bitcoin often serves as a leading indicator for broader crypto trends. When Bitcoin loses ground, other coins typically follow. This is one reason traders closely monitor Bitcoin’s price reaction after major economic events such as Federal Reserve announcements.

Risk appetite indicators — commonly tracked by market analysts — showed rising levels of “fear,” indicating that traders became more conservative toward risk in response to macroeconomic uncertainty.

Opportunities for long-term investors

Despite the decline, some long-term Bitcoin holders view the dip as a buying opportunity, particularly if they believe in Bitcoin’s long-term prospects as a digital store of value or hedge against inflation.

Large holders and corporate entities that accumulate Bitcoin over time may continue purchasing during dips to average entry costs and strengthen long-term positions.

Technical and market indicators

Technical indicators showed that Bitcoin entered oversold conditions as relative strength indicators fell to lower levels before stabilizing. This suggests that strong selling momentum pushed prices downward, but reduced selling pressure may create a base for potential rebound attempts.

Traders often watch support zones around $66,000 and resistance areas near $68,000 to gauge the direction of future moves. A break below these critical levels could signal further losses or the start of a deeper correction phase.

Trading volumes also increased during the selloff, indicating strong participation from both sides as Bitcoin’s price fluctuated.

Short- and long-term outlook

In the short term, Bitcoin may continue to experience elevated volatility as markets interpret evolving macroeconomic data and upcoming releases including inflation reports and employment figures. These data points will influence expectations for future Federal Reserve policy.

Over the longer term, many analysts see Bitcoin’s price influenced by a complex mix of fundamentals, supply and demand dynamics, investor adoption trends, and regulatory developments. Events such as equity market cycles and trends in institutional adoption of digital assets also play a key role.

While some view Bitcoin as a hedge against inflation or fiat currency weakness, others argue that its volatility may limit broader mainstream adoption until clearer regulatory frameworks emerge.

Oil prices rose on Thursday, driven by growing concerns over a potential military conflict between the United States and Iran as both countries escalated their military activity in the oil-producing region.

Brent crude futures were up by $1.09, or 1.55%, at $71.44 per barrel by 1247 GMT, while US West Texas Intermediate (WTI) also gained $1.09, or 1.7%, to $66.28.

Both benchmarks approached six-month highs on Thursday after surging more than 4% on Wednesday as traders priced in supply disruption risks in the event of conflict.

Rising geopolitical risks

The recent rise in oil prices suggests the market is adding to an already significant geopolitical risk premium, as the world’s most important oil artery returns to the danger zone once again, according to Saxo Bank analyst Ole Hansen.

Around 20% of global oil supplies pass through the Strait of Hormuz.

Iranian state media reported that the country closed the Strait of Hormuz for a few hours on Tuesday without clarifying whether the passage had been fully reopened.

Expectations of further gains

There is additional room for oil prices to rise if the perceived likelihood of strikes on Iran increases, said Energy Aspects analyst Richard Jones, adding that some traders have abandoned expectations of an imminent deal with Iran and instead begun pricing in higher risks of near-term military action.

Some progress was made during Iran talks in Geneva this week, but gaps remained on several issues, the White House said on Wednesday, adding that it expects Tehran to return with more details within a few weeks.

Iran issued a notice to airmen (NOTAM) indicating planned missile launches across areas in the south of the country on Thursday from 0330 GMT to 1330 GMT, according to the US Federal Aviation Administration website.

US military escalation

Meanwhile, the United States deployed warships near Iran, with US Vice President JD Vance saying Washington is considering whether to continue diplomatic engagement with Tehran or pursue another option.

Meanwhile, two days of peace talks in Geneva between Ukraine and Russia ended on Wednesday without a breakthrough, with Ukrainian President Volodymyr Zelenskiy accusing Moscow of stalling US-led mediation efforts to end the four-year war.

US crude oil, gasoline, and diesel inventories declined last week, market sources said, citing figures from the American Petroleum Institute on Wednesday, contrary to a Reuters poll that had expected crude stockpiles to rise by 2.1 million barrels in the week ending February 13.

Official US oil inventory reports from the Energy Information Administration are due to be released on Thursday.

The US dollar fell on Thursday but remained above its recent lows after minutes from the latest Federal Reserve meeting showed policymakers are in no rush to cut interest rates, with several members open to raising rates again if inflation remains elevated.

Investors also grew cautious amid reports of an expanding US military presence in the Middle East and the possibility of a US-Iran conflict, which pushed oil prices and traditional safe-haven assets higher.

Meanwhile, the euro stabilized near $1.18 after a sharp drop in the previous session, following reports that European Central Bank President Christine Lagarde may leave her post before her mandate ends in October next year.

Division Within the Federal Reserve

Minutes released Wednesday revealed divisions among Federal Reserve officials regarding the future path of US interest rates. The document suggested that the incoming Fed chair, expected to take office in May, could face difficulties in pushing through rate cuts.

The minutes indicated that many policymakers expect productivity gains to help contain inflation, but “most participants” warned that progress could be slow and uneven.

Several analysts noted that rate hikes remain possible if inflation continues to exceed target levels.

Peter Dragicevich, APAC currency strategist at Corpay, said: “This suggests there is no urgent need to cut rates again, at least not before current Chair Jerome Powell’s term ends in May.”

Data released Wednesday also showed US factory output posted its largest increase in 11 months during January, alongside stronger capital spending and higher housing starts.

Markets are now awaiting global PMI readings and US GDP data scheduled for release on Friday.

Euro Steadies After Lagarde Speculation

The euro edged slightly higher against most major currencies after stabilizing following a selloff triggered by speculation that Lagarde could leave the ECB early. According to a report by the Financial Times, such a move would give outgoing French President Emmanuel Macron influence over selecting her successor.

Lagarde’s term is set to end in October 2027, and while potential successors are not expected to dramatically shift monetary policy, the speculation emerged at a time when leadership changes are also taking shape at the Federal Reserve.

Terry Wiseman, global FX and rates strategist at Macquarie Group, said that a change at the Fed could prove more significant for global policy direction than a change at the ECB.

He added: “She could easily be replaced by someone more dovish or more hawkish — it’s unclear because there are no clear front-runners. That’s likely why markets haven’t reacted strongly.”

Yen Falls, Aussie Dollar Holds Steady

The Japanese yen weakened for a second consecutive session after the Trump administration announced $36 billion in projects as the first wave of investments under Japan’s pledge to invest $550 billion in the United States.

The yen traded slightly weaker at 154.96 per dollar after losing about 1.5% this week.

Chris Turner, head of global research at ING, said Japanese direct investment into the US will be a key theme this year, adding further complexity to the outlook for the USD/JPY pair.

The central question for FX markets is whether these investments will boost dollar flows or whether Japan will use its foreign reserves to back dollar loans and avoid putting pressure on the yen — with Tokyo appearing to favor the latter.

Meanwhile, the Australian dollar held steady near $0.7050 after employment data showed the jobless rate remained at a multi-month low of 4.1%.

The New Zealand dollar rose 0.3% to $0.5982 after recording its biggest decline since April, following a more cautious stance from the Reserve Bank of New Zealand regarding future rate hikes.

Holiday closures in Hong Kong, China, and Taiwan slowed Asian trading activity, while the offshore Chinese yuan remained stable around 6.9 per dollar during European trading hours.