Bitcoin Retreats as Oil Surges Above $100 After Tanker Attacks

Bitcoin’s short-lived recovery ended after renewed geopolitical tensions pushed oil prices sharply higher, highlighting the cryptocurrency market’s continued sensitivity to macroeconomic and geopolitical developments.

Bitcoin slipped to $69,393 on Thursday morning, falling 0.8% over the past 24 hours and 4.3% over the week, after renewed geopolitical tensions pushed oil prices sharply higher. Bitcoin was trading at $69,700 t the time of writing.

The decline followed reports of attacks on two oil tankers in Iraqi waters, which sent Brent Crude surging back above $100 per barrel. The spike in energy prices quickly reversed market optimism that had emerged a day earlier following a proposal by the International Energy Agency to release a record amount of strategic oil reserves to stabilize global supply.

Instead, the renewed escalation in the Middle East triggered a broader retreat in risk sentiment across Asian markets.

Bitcoin Rejected Again Near $71,000

Bitcoin briefly climbed to $71,230 late Wednesday, but the rally proved short-lived once news of the tanker attacks emerged. Within hours, the cryptocurrency lost nearly $2,000, highlighting how quickly geopolitical developments are shaping market sentiment.

The move marked the third time in two weeks that Bitcoin has attempted to break above the $71,000 level, only to be pushed lower by renewed tensions linked to the ongoing Middle East conflict escalation.

Oil Shock Drives Market Risk-Off Mood

Oil markets reacted sharply to the developments. Brent crude surged as much as 10.5%, supported by the tanker attacks, ongoing hostilities across the Persian Gulf, and operational developments around Mina Al Fahal Port.

At the same time, traders are increasingly questioning whether the proposed IEA reserve release will be large enough to offset potential supply disruptions in the region.

The surge in oil prices weighed heavily on equities. The MSCI Asia Pacific Index dropped 1.8%, with energy companies emerging as the only sector posting gains during the session.

Crypto Market Moves Lower

The broader cryptocurrency market followed Bitcoin’s decline. Ethereum fell to $2,025, down 0.5% on the day and 4.5% on the week, while Solana dropped to $85, making it the worst-performing major token over the past seven days.

XRP declined to $1.37, and Dogecoin slipped to $0.092, giving back much of the gains recorded earlier in the week following comments from Elon Musk. Meanwhile, BNB remained largely unchanged near $642.

Market Stuck in a Range

Despite frequent volatility, Bitcoin has remained largely range-bound over the past two weeks. Positive headlines have repeatedly pushed the asset toward the $71,000–$74,000 range, while negative developments have dragged it back toward $66,000–$68,000.

The result has been limited net movement, with each rally quickly encountering selling pressure.

On-Chain Data Signals Weak Demand

Blockchain data suggests the lack of sustained momentum may reflect weakening demand. According to analytics firm CryptoQuant, apparent demand for Bitcoin remains deeply negative, with a 30-day reading of –30,800 BTC.

The firm’s bull-bear indicator also remains in bearish territory, while the amount of Bitcoin supply currently held at a loss continues to climb. These indicators suggest that many investors are using short-term price rebounds as opportunities to exit positions.

Geopolitical Uncertainty Persists

Geopolitical uncertainty remains a major factor shaping market sentiment. Earlier this week, Donald Trump stated that the conflict could resolve “very soon” and that military objectives were “pretty well complete.”

However, the timeline remains unclear as Iran continues targeting regional assets and disruptions persist around the Strait of Hormuz, one of the world’s most critical energy shipping routes.

Fed Meeting Looms as Oil Complicates Outlook

Investors are now turning their attention to the upcoming policy meeting of the Federal Reserve, scheduled for March 17–18.

With oil prices climbing back above $100, concerns about stagflation are resurfacing. Higher energy costs could complicate the central bank’s policy outlook and push expectations for interest rate cuts further into the future.

For cryptocurrency markets, the combination of geopolitical tension, rising oil prices, and monetary policy uncertainty continues to cap upside momentum.