Bitcoin came under pressure as geopolitical tensions in the Middle East translated into a sharp rise in oil prices. The world’s largest cryptocurrency weakened by nearly two percent in a short timeframe, while oil recorded dramatic gains.
Bitcoin thus continues its four-day decline and according to latest data is trading around 66,000 dollars.
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Oil jumped nearly 20% in minutes
The sharp market movement occurred on Sunday shortly after the opening of American futures markets. According to data from the decentralized derivatives platform Hyperliquid, oil prices jumped from 95 dollars to 113.7 dollars per barrel in a short time, representing nearly a twenty-percent increase in just fifteen minutes.
The reason lies in growing concerns about disruptions to global energy supplies. Iraq has warned that up to 3 million barrels of oil per day could be endangered if Iran were to launch attacks on tankers in the Strait of Hormuz, one of the world’s most critical energy chokepoints.
According to data from TradingView, this marks the highest oil price since April 2022, the period shortly after Russia’s invasion of Ukraine began.
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Middle East conflict shakes energy markets
Oil prices had been rising throughout the previous week. Overall, they surged by more than 30%, in response to escalating conflict between the United States, Israel, and Iran.
The United States and Israel launched strikes against Iran, to which Tehran responded with counterattacks against several Middle Eastern countries. Rising tensions sparked concerns that the conflict could threaten key oil shipping routes and destabilize energy markets.
Such geopolitical shocks often have an impact on cryptocurrency markets, which respond to global economic uncertainty similarly to traditional financial assets.
Trump expects swift market stabilization
American President Donald Trump believes the sharp rise in oil prices will not last long. “We expected oil prices to rise. And they will rise. But they will also fall quickly,” Trump told reporters on Saturday.
At the same time, he dismissed speculation that the United States might be forced to release oil from its strategic reserves. “We have plenty of oil. Our country has enormous reserves,” he stated. According to him, there is sufficient oil in the world and current tensions will, in his view, “be resolved very quickly”.
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