Bitcoin (BTC) Price: Oil Tanker Attacks Send Crude Surging, Pushing BTC Below $70,000

TLDR

• Bitcoin fell to $69,393 after attacks on two oil tankers in Iraqi waters sent Brent crude above $100 a barrel.
• Iran announced a shift from “reciprocal hits” to “continuous strikes,” threatening to push oil to $200.
• The Strait of Hormuz remains blocked to ships carrying oil to Israel and the US.
• On-chain data shows apparent demand at -30,800 BTC over 30 days, with the bull-bear indicator still in bear territory.
• The Fed meeting on March 17-18 looms, with oil above $100 making rate cuts less likely.

Bitcoin fell below $70,000 on Thursday after attacks on two oil tankers in Iraqi waters pushed Brent crude back above $100 a barrel.

The price dropped to $69,393, down 0.8% in 24 hours and 4.3% on the week. It briefly touched $71,230 late Wednesday before the tanker headlines hit, erasing nearly $2,000 in a matter of hours.

This is the third time in two weeks Bitcoin has pushed above $71,000 only to be pulled back by Middle East conflict news.

Brent crude jumped as much as 10.5% on Thursday. The surge was driven by the tanker attacks, continued Persian Gulf hostilities, clearance of Oman’s Mina Al Fahal port, and doubt over whether the IEA reserve release would offset supply disruptions.

The IEA had proposed releasing 400 million barrels from strategic reserves, but markets are not convinced it will be enough.

Iran Shifts War Strategy

Iran’s Islamic Revolutionary Guard Corps announced it would move from “reciprocal hits” to “continuous strikes.” The country also said it would keep blocking ships carrying oil to Israel and the United States through the Strait of Hormuz.

Iran has stated it wants to drive crude oil prices to $200 a barrel.

Reports also indicate the US is running low on interceptors, which could extend the conflict.

Impact on Bitcoin and Crypto Markets

The broader crypto market fell alongside Bitcoin. Ether dropped to $2,025, down 0.5% on the day and 4.5% on the week. Solana fell 1.5% to $85, down 5.7% over seven days.

XRP lost 0.8% to $1.37. Dogecoin fell 0.8% to $0.092, giving back most of Tuesday’s gains tied to Elon Musk. BNB was flat at $642.

MSCI’s Asia Pacific index fell 1.8%, with energy the only sector posting gains.

On-chain data shows apparent BTC demand at -30,800 BTC on a 30-day basis. CryptoQuant’s bull-bear indicator remains in bear territory. Supply in loss continues to rise, and bounces are being sold into.

US inflation came in at 2.4% headline and 2.5% core for February, both above the Fed’s 2% target.

The Federal Reserve meets March 17-18. With oil above $100 and inflation still elevated, rate cuts look increasingly unlikely in the near term.

Bitcoin’s technical picture shows a bearish flag pattern forming on the daily chart, with the coin sitting below its 50-day and 100-day EMAs and the Supertrend indicator still red.

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