Bitcoin Slides Below $70K as Oil Tops $100 — What to Watch Next
Bitcoin dropped below $70,000 as oil prices surged past $100 due to geopolitical tensions, showing crypto's failure as a safe haven.Summary
Bitcoin fell 1.8% to around $69,400 as Brent crude jumped over 9% to surpass $101 a barrel following attacks on tankers in Iraqi waters and in Oman, highlighting Bitcoin's inability to act as a safe haven during geopolitical conflict.
The surge in oil prices, which markets largely shrugged off despite a record emergency reserve release by the IEA, fuels inflation expectations, pushing back Federal Reserve rate cut timelines and restricting the liquidity Bitcoin needs to rally. Consequently, Bitcoin is tracking risk assets rather than gold, having fallen 47% from its October 2025 high.
Despite the price weakness, institutional money appears to be accumulating, with US spot Bitcoin ETFs logging three consecutive days of net inflows totaling $533 million recently. Looking ahead, traders must watch Friday's PCE data, which could cement a hawkish Fed stance. Longer term, historical patterns suggest war-driven deficit spending might eventually lead to Fed easing, creating a monetary tailwind for risk assets, while sanctioned states' increasing reliance on stablecoins for cross-border transactions suggests crypto infrastructure will persist.
(Source：BeInCrypto)