Bitcoin Price Extends Decline as Oil Prices Surge To Two-Year High

The Bitcoin price has extended its decline today, dropping below the psychological $67,000 level. This comes as oil prices surge to a 2-year high, with Iran moving to close the Strait of Hormuz amid escalating tensions with the U.S. and Israel.

Bitcoin Price Falls Below $67,000 as Oil Prices Rise To $85

TradingView data shows that the leading crypto has fallen below $67,000, down over 3% from an intraday high above $68,000. This follows the surge in Brent oil prices, with crude oil rising to $85 per barrel, the highest level since May 2024.

As CoinGape reported, the Bitcoin price had dropped below $68,000 earlier in the day as U.S. President Donald Trump signaled that they had enough stockpiles to win the war against Iran, no matter how long it takes. As such, traders are now pricing in the possibility of the war lasting longer than a month, as Trump had earlier predicted.

A prolonged U.S.-Iran war could continue to send oil prices soaring, which is negative for risk assets like BTC. Iran has already ordered the closure of the Strait of Hormuz, a major oil export chokepoint. Furthermore, Iraq, a key oil producer, has suspended oil production at the Rumaila oil field, the world’s second-largest oil field.

As CoinGape reported, former U.S. Treasury Secretary Janet Yellen warned that the Iran war could cause inflation to rise, a development which she noted will further delay rate cuts. The delay in rate cuts could create further downside for the Bitcoin price and the broader crypto market.

However, BitMEX co-founder Arthur Hayes stated that an extended U.S.-Iran war raises the likelihood of more rate cuts. He alluded to history, noting that the Fed has always cut rates and printed more money amid every major geopolitical tension.

The $70,000 Level Remains A Ceiling For BTC

On-chain analytics platform Glassnode noted that the $70,000 level remains a ceiling for the Bitcoin price. Bitcoin rose to $70,000 yesterday but faced significant selling pressure, which sparked a decline to a daily close of around $68,000.

Glassnode noted that each time the 12HR-SMA of Net Realized profit and loss spiked above $5 million per hour, price stalled and reversed at the $69,400 range high. “This region continues to cap every recovery attempt. The asymmetry reflects the fragility of the current demand structure,” the platform explained.

Glassnode further stated that the $70,000 level will remain a ceiling and not a floor for the Bitcoin price until this level of profit-taking can be absorbed without triggering a rejection.