Bitcoin has dropped over 3.5% to below $67,000. Escalating Middle East tensions, including threats to close the Strait of Hormuz, have driven investors away from risk assets and into the U.S. dollar.
Crude oil prices have surged, with Brent crude climbing more than 13% in five days, reaching record tanker freight costs. This oil shock is impacting financial markets, pushing the dollar index up nearly 1% and U.S. Treasury yields higher. Analysts suggest central banks may face renewed inflation pressure from rising fuel costs.
Despite brief approaches to $70,000 earlier in the week, Bitcoin reversed course as conflict erupted. While cryptocurrency prices remain range-bound, market observers note that options markets suggest traders were prepared for weekend risks, with some positioning for a potential rally beyond $70,000 this month.