Analytical Tone (Macro-Finance Focus)
Bitcoin Drops Below Key Support as Israel-Iran Conflict Sends Oil Prices Soaring
Bitcoin plunged below $104,000 early Thursday as geopolitical tensions between Israel and Iran escalated, triggering a broad wave of risk-off sentiment and spiking energy prices.
The cryptocurrency briefly touched $103,150, aligning with its 50-day simple moving average, before recovering modestly to $105,320, down 4.6% on the day. The decline was accompanied by a sharp deterioration in BTC options skew, with the 7-day metric falling to -3.84%, indicating traders’ growing preference for downside protection.
Markets reeled after Israel launched targeted airstrikes on Tehran’s nuclear and military infrastructure, sparking fears of retaliation and a broader regional conflict.
WTI crude surged over 6% to $74.30 per barrel, its highest since February, feeding concerns that surging energy prices could reignite global inflation. Bond yields fell while gold gained 1% to $3,436, as investors rotated into traditional safe havens.
With oil’s inflationary impact threatening to stall expected Fed rate cuts, traders are bracing for increased volatility across both equities and digital assets.
