Bitcoin slides toward $75,000, ETH, SOL, XRP drop as oil hits four-year high
Crypto sold off across the board with bitcoin down 2.1% and ether off 3.4% as Brent crude surged 7.1% to $126 a barrel on reports President Trump is being briefed on military options for Iran.
What to know:
- Bitcoin and major cryptocurrencies fell as Brent crude surged to a four-year intraday high on renewed fears of U.S. military escalation against Iran.
- The jump in oil prices reflects a growing war premium tied to the effective shutdown of the Strait of Hormuz and expectations that hypersonic U.S. weapons could be deployed in the region.
- Analysts say Bitcoin is unlikely to break above $80,000 unless Middle East tensions ease and Brent crude drops below $100 a barrel, which could spur a broader rally in risk assets.
The report added U.S. Central Command has asked for hypersonic missiles to be deployed to the Middle East, which would mark the first time American forces have used those weapons in combat. The Strait of Hormuz has been effectively shut since the war began in late February, choking flows of crude, natural gas, and oil products.
Such activity leads to a war premium, which refers to the portion of an asset’s price driven by conflict risk rather than supply-demand fundamentals. Brent has been carrying a heavy one all year, with prices up over 100% year-to-date.
The global benchmark is now riding a nine-day winning streak, the longest since May 2022, and is up over 100% year-to-date.
Ether dropped 3.4% to $2,244 and is down 4.4% on the week. XRP fell 2.1% to $1.37, off 3.7% over seven days. Solana lost 2.6% to $82.62. BNB shed 1.9% to $615. The only green print in the top 10 outside stablecoins is dogecoin, up 3.8% on the day and 10.1% on the week to $0.10.
