Bitcoin hovered above $70,000 on Wednesday night as oil markets plummeted amid an escalating conflict between the United States, Israel and Iran, causing one of the most severe energy shocks since the 1970s.
Iranian officials have warned that the world needs to prepare for oil prices to reach $200 per barrel if the conflict escalates, Reuters reported.
Iran’s military reportedly attacked a commercial ship in Gulf waters on Wednesday, warning ships in the region to follow military instructions as the conflict spreads to key shipping lanes. The war, sparked by joint US and Israeli airstrikes about two weeks ago, has already disrupted global energy markets and regional transportation networks.
US President Donald Trump said at a rally in Kentucky that the US had effectively won the war, but suggested military operations could continue as authorities seek to completely neutralize Iran’s ability to project military power across the Middle East.
Oil prices soared to about $120 on Monday, but fell to $77 on Tuesday. It rebounded about 6% to around $94 by evening on Wednesday as traders weighed the risk of further supply disruptions across the region.
However, the crypto market has shown relative resilience. Despite the geopolitical turmoil, Bitcoin remained above $70,000.
Nansen Principal Research Analyst Aurélie Bartel said the current crypto market reaction suggests that much of the negative macro backdrop may already be priced into digital assets. He noted that while geopolitical shocks in the past have often triggered 5% to 10% declines in Bitcoin, current movements appear to be more modest and may reflect less speculative positioning among traders.
The conflict has spread beyond Iran and Israel, with Gulf ports and cities facing drone and missile attacks and increasing pressure from Europe, Turkey and other governments to ease tensions.
Disclosure: This article was edited by Estefano Gómez. Please see our Editorial Policy for more information on how we create and review content.
