Bitcoin is poised to record its fifth consecutive weekly loss, a streak not witnessed since March to May 2022. This downturn is occurring as escalating geopolitical tensions in the Middle East drive up the U.S. dollar and crude oil prices, thereby tightening financial conditions and pressuring risk assets like cryptocurrencies.
The largest cryptocurrency by market capitalization is down approximately 3% for the week, trading below $67,000. This weakness is exacerbated by macro pressures. Reports indicate the U.S. has amassed significant air power in the Middle East, increasing global uncertainty. This uncertainty has propelled the dollar index to its highest level since early February and pushed WTI crude oil prices higher. Traditionally, a stronger dollar and rising oil prices create headwinds for risk assets, including Bitcoin.
This current weekly losing streak follows a series of monthly declines, with Bitcoin having recorded five consecutive monthly drops since October. This marks the second-longest monthly losing streak on record. Additionally, Bitcoin has underperformed gold for seven consecutive months, its longest period of relative weakness against the precious metal.