Bitcoin climbs above $78,000 on track for fourth weekly profit in row

Bitcoin maintained its trading near the 78 thousand dollar level on Friday, heading toward achieving its fourth consecutive weekly gains, supported by the continued flows of institutional investments, while geopolitical tensions and the rise in oil prices limited the upward momentum.

And the largest cryptocurrency in the world rose by 0.9% to reach 78,256 dollars by 09:42 AM Eastern Time (13:42 GMT). And it had surpassed the 79 thousand dollar level briefly on Wednesday, and is heading toward achieving weekly gains of about 6%.

And data from SoSoValue company showed that spot Bitcoin exchange-traded funds listed in the United States continued to attract strong flows, with the recording of about one billion dollars as net flows during the past week, in one of the strongest waves of flows since January.

And the total cumulative net flows rose to more than 58 billion dollars, while the managed assets approached the level of 100 billion dollars, which reflects the volume of increasing institutional participation.

Strait of Hormuz risks pressuring the markets

Market sentiment remained fragile in light of the continued tensions in the Middle East, despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks.

And concerns regarding the Strait of Hormuz—one of the most important arteries of global oil supplies—continued to dominate investor attention, with the escalation of disturbances and military activities, which increased the state of uncertainty.

And oil prices remained high, as Brent crude surpassed the level of 105 dollars per barrel, which strengthened inflationary concerns and negatively affected high-risk assets such as digital currencies.

And despite that, Bitcoin showed a degree of resilience during the recent sessions, after it rose with risky assets earlier in the week supported by optimism regarding the ceasefire.

And the dollar also rose supported by the demand for it as a safe haven, in a sign of the general caution in global financial markets, while global stocks witnessed a mixed performance.

And in a separate context, Morgan Stanley Investment Management launched a money market fund dedicated to stablecoin issuers, under the name "Stablecoin Reserves Portfolio," with the aim of providing an investment tool compatible with holding the reserves of these currencies.

Movements of other digital currencies

The Ethereum currency—the second largest cryptocurrency—stabilized at the level of 2,321.06 dollars, while the XRP currency rose by 1.5% to 1.44 dollars.