Oil Surge Pushes Bitcoin to Lowest Since March

Bitcoin dropped 2.4% Wednesday to $65,699, its lowest since March, as renewed Middle East conflict drove oil prices higher and weighed on risk assets.

Ethereum and Solana each fell about 5%, to $1,830 and $72, respectively.

U.S. Central Command reported intercepting Iranian missiles and conducting self-defense strikes near the Strait of Hormuz, a key oil transit chokepoint. Brent crude futures rose to a 12-day high of $96 per barrel.

The U.S. 10-year Treasury yield hit 4.5%, signaling inflation concerns as energy costs rise. Carlos Guzman of GSR said the conflict has dampened enthusiasm for AI and tech stocks, with the Nasdaq and S&P 500 both declining.

Guzman noted that Strategy's recent sale of 32 Bitcoin for $2.5 million added to retail pessimism. Compass Point analysts called Bitcoin's drop a "capitulation event," noting that 26% of recent sales came from investors who bought above $90,000.