Bitcoin has fallen to $66,010, a nearly 2% drop in 24 hours, retreating from its recent peak. Analysts attribute the decline to a macro-driven pullback, influenced by increased geopolitical risk and rising oil prices that are fueling inflation and tightening global financial conditions. Crude oil prices have surpassed $110 per barrel, reflecting sustained tensions in the Middle East. This surge in oil prices, a key input across various industries, is impacting global economic growth and influencing the cryptocurrency market, which has become increasingly correlated with equity market performance and geopolitical volatility.
Major Asian stock markets have also felt the impact, with significant fluctuations observed in Japan's Nikkei, South Korea's KOSPI, Hong Kong's Hang Seng, and the Shanghai Composite Index. Despite recent volatility, Bitcoin's resilience compared to past bear markets may be attributed to a larger presence of institutional investors.