Bitcoin’s short-lived recovery faltered after renewed geopolitical tensions sent oil prices sharply higher, rattling risk assets across global markets.
Bitcoin dropped to around $69,393 on Thursday morning, down 0.8% over 24 hours and 4.3% for the week. The decline came after attacks on two oil tankers in Iraqi waters pushed Brent crude above $100 per barrel.
Markets had briefly rallied on Wednesday following the International Energy Agency’s proposal for a record strategic reserve release, but the spike in crude quickly erased optimism, sending risk sentiment lower across Asia.
Bitcoin had touched roughly $71,230 late Wednesday before news of the tanker attacks triggered a nearly $2,000 sell-off in just hours. This marks the third time in two weeks that bitcoin has breached $71,000 only to retreat amid escalating tensions in the Middle East.
Brent crude surged as much as 10.5% on Thursday, driven by the tanker attacks, the reopening of Oman’s Mina Al Fahal port, ongoing Persian Gulf hostilities, and doubts that the IEA’s reserve release would be sufficient to offset supply disruptions.
The broader financial markets were also affected. The MSCI Asia Pacific Index fell 1.8%, with energy as the only sector posting gains. Losses extended throughout the session, showing little sign of stabilization.
Other cryptocurrencies mirrored bitcoin’s decline. Ether slipped to $2,025, down 0.5% for the day and 4.5% for the week. Solana fell 1.5% to $85, extending its seven-day loss to 5.7%, the weakest among major tokens. XRP declined 0.8% to $1.37, while Dogecoin gave back 0.8% to $0.092, erasing most of Tuesday’s Musk-driven gains. BNB remained flat at $642.
Over the past two weeks, bitcoin has followed a recurring pattern: positive headlines push it toward $71,000–$74,000, while negative geopolitical developments drag it back toward $66,000–$68,000. Net movement has been minimal, in line with on-chain data signals.
Demand metrics remain weak. CryptoQuant reports apparent demand at about -30,800 BTC over 30 days. Its bull-bear indicator remains bearish, and supply held at a loss continues climbing, suggesting investors are selling into rallies.
Geopolitical uncertainty continues to weigh. Donald Trump said earlier this week the conflict could end “very soon” and that military objectives were largely complete. Yet Iran continues strikes in the region, and the Strait of Hormuz remains disrupted, leaving markets unable to gauge the conflict’s duration.
With the Federal Reserve meeting scheduled for March 17–18, oil prices above $100 reinforce stagflation concerns and make near-term interest rate cuts increasingly unlikely.
