Bitcoin experienced a decline in value, falling 0.8% in the last 24 hours and 4.3% over the week, sitting at $69,393 on Thursday morning. This drop followed attacks on two tankers in Iraqi waters, which sent Brent crude oil prices soaring past $100 a barrel.
After a brief sense of optimism regarding the IEA’s suggestion to release substantial reserves, investor confidence diminished, particularly across Asian markets.
Interestingly, just before this news broke, Bitcoin had peaked at $71,230 late Wednesday. The impact was swift, as it plummeted nearly $2,000 within a matter of hours.
This latest price action marks the third time in two weeks that Bitcoin has struggled against rising tensions in the Middle East.
Brent crude jumped as much as 10.5% on Thursday, driven by the tanker attacks, the closure of Oman’s Mina al-Fakhar port, ongoing conflicts in the Persian Gulf, and skepticism about whether IEA’s planned reserves can compensate for supply issues.
The MSCI Asia-Pacific index fell 1.8%, with the energy sector being the only gainer among the losses, which expanded as trading continued without any sign of stabilization.
In the wake of Bitcoin’s dip, the wider cryptocurrency market also fell. Ether dropped to $2,025, down 0.5% for the day and 4.5% for the week. Solana fell 1.5% to $85, marking a 5.7% decline over the week, making it the weakest performer among major cryptocurrencies. XRP decreased 0.8% to $1.37.
Dogecoin followed suit, dropping 0.8% to $0.092, undoing most of the gains it made earlier in the week. Meanwhile, BNB remained unchanged at $642.
The trends of the past two weeks have exhibited a clear pattern. Positive headlines have pushed Bitcoin up toward $71,000-$74,000, while negative developments pull it back to around $66,000-$68,000. When viewed over this timeframe, it seems like there’s been little net change, which aligns with what on-chain data is showing.
Demand remains negative, reflecting a significant loss of 30,800 BTC over the past 30 days. CryptoQuant’s indicator indicates a bearish stance, with many holders opting to sell during price rebounds.
President Trump mentioned earlier this week that the ongoing war would be resolved “soon” and that military objectives were largely complete. However, the timeline is ambiguous. Iran continues its attacks in the region, and the Strait of Hormuz remains unstable, with mixed signals from the US complicating market predictions regarding the conflict’s duration.
With the Fed’s upcoming March 17-18 meeting just five days away, concerns about stagflation are increasingly apparent, especially with oil prices exceeding $100, making the prospect of interest rate cuts seem more remote.
