Bitcoin and major cryptocurrencies declined as Brent crude surged to a four-year high amid escalating Middle East tensions.
Bitcoin fell 2.1% to around $75,600, while Ethereum dropped 3.4%, Solana lost 2.6% and XRP slid 2.1% as risk assets weakened globally.
The sell-off followed a 7.1% jump in oil prices to $126 a barrel, driven by concerns over potential US military escalation involving Iran and disruption in the Strait of Hormuz.
The surge reflects a growing “war premium,” where asset prices are influenced by geopolitical risk rather than supply-demand fundamentals, with oil now up more than 100% year-to-date.
Analysts said bitcoin is unlikely to break above $80,000 unless tensions ease and oil prices fall below $100, highlighting a strong inverse relationship between energy shocks and crypto risk appetite.
“Bitcoin is trying to break the key $80,000 level, which would require a resolution to the Middle East conflict and, as a result, a drop in Brent crude oil prices below $100 per barrel,”
Said Fernando Lillo of Zoomex.
The broader market weakness saw equities and bonds decline while the dollar strengthened, underscoring how geopolitical uncertainty is pressuring risk assets, including crypto.
At the time of reporting, Bitcoin price was $75,756.62.