Bitcoin’s short-lived rebound ended after fresh geopolitical tensions pushed oil prices sharply higher again, rattling risk assets across global markets.
The largest cryptocurrency, Bitcoin, slipped to about $69,393 on Thursday morning, down roughly 0.8% over the past 24 hours and about 4.3% over the past week. The decline followed attacks on two oil tankers in Iraqi waters that sent Brent crude surging back above $100 per barrel.
The move reversed the optimism that had briefly lifted markets on Wednesday after the International Energy Agency proposed a record release from strategic reserves. The renewed jump in crude prices quickly weakened risk sentiment across Asian markets.
Bitcoin’s chart reflects the sudden shift in mood. The cryptocurrency climbed to roughly $71,230 late Wednesday before headlines about the tanker attacks triggered a rapid sell-off, sending prices nearly $2,000 lower within hours.
It marked the third instance in the past two weeks where bitcoin broke above the $71,000 level only to retreat following escalating tensions in the Middle East.
Oil markets reacted strongly to the latest developments. Brent crude surged as much as 10.5% during Thursday’s session, driven by the tanker attacks, the reopening of the Mina Al Fahal port in Oman, ongoing hostilities around the Persian Gulf and growing doubts that the IEA’s proposed reserve release will be large enough to offset potential supply disruptions.
Equity markets in the region also declined. The MSCI Asia Pacific Index dropped 1.8%, with energy stocks the only sector posting gains. Losses extended throughout the trading session, with little sign of stabilization.
The broader crypto market also moved lower alongside bitcoin. Ether fell to around $2,025, down 0.5% on the day and about 4.5% over the week. Solana declined 1.5% to $85, bringing its seven-day drop to 5.7%, the weakest performance among major tokens. XRP slipped 0.8% to about $1.37.
Meanwhile, Dogecoin fell 0.8% to $0.092, erasing most of the gains sparked earlier in the week by comments from Elon Musk. BNB traded largely unchanged near $642.
Price movements over the past two weeks have followed a familiar pattern. Positive developments push bitcoin toward the $71,000–$74,000 range, while negative geopolitical headlines drag it back toward $66,000–$68,000. Overall, the net movement has remained minimal, consistent with signals from on-chain data.
Demand indicators continue to show weakness. Data from CryptoQuant indicates apparent demand is still deeply negative at roughly -30,800 BTC over a 30-day period. The firm’s bull-bear indicator also remains in bearish territory, while the amount of supply held at a loss continues to increase, suggesting investors are using rallies as opportunities to sell.
Geopolitical uncertainty remains a key factor for markets. Donald Trump said earlier this week that the conflict could end “very soon” and that military objectives were largely completed. However, the timeline remains unclear as Iran continues targeting locations across the region and disruptions persist around the Strait of Hormuz.
With the next policy meeting of the Federal Reserve scheduled for March 17–18, oil prices moving back above $100 are strengthening concerns about stagflation and making the prospect of near-term interest rate cuts appear even more distant.
