Bitcoin dropped nearly 2% within 15 minutes on Sunday to around $65,725 as oil prices surged amid escalating tensions in the Middle East and fears of a global energy supply disruption.
Data from the decentralised derivatives platform Hyperliquid showed oil climbing from about $95 to $113.7 per barrel shortly after U.S. futures markets opened.
The spike followed warnings from Iraq that roughly 3 million barrels per day of production could be disrupted if Iranian threats against tankers in the Strait of Hormuz escalate.
Bitcoin fell from $66,960 to $65,725 during the move before recovering slightly to about $66,272 at the time of publication.
Oil later cooled to around $105 per barrel after briefly reaching its highest level since April 2022.
The cryptocurrency had rallied earlier in the week from below $64,000 to about $73,770 as geopolitical tensions intensified before reversing over the last four consecutive trading days.
President Donald Trump said he expects the oil surge to be temporary, stating that prices will “come down very fast” as markets stabilise.
At the time of reporting, Bitcoin price was $66,050.26.