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Bitcoin slides as Middle East tensions lift oil prices

The drop followed oil moving above $105 a barrel and coincided with bitcoin falling more than 2% over the prior day.

Reported · Written up by our desk · Market Structure

Bitcoin fell on Thursday as renewed fighting in the Middle East pushed oil higher, dragging on the price of the largest cryptocurrency. Bitcoin was recently trading around $77,208 after slipping as low as $76,748, down more than 2% over the past day, according to Bitcoin Magazine.

The article links the move to signals from Iran that it would not back down against U.S. forces, with earlier this week escalations including attacks tied to Iran and Tehran-backed Houthis striking Saudi assets. Those developments also supported higher crude prices, which matters for broader market expectations.

Bitcoin Magazine also connects the selloff to macro expectations, saying higher oil can raise inflation risk and make rate cuts less likely. The outlet notes bitcoin has tended to perform better in low interest rate environments and has seen sell-offs when the Federal Reserve turns more hawkish.

The piece adds that bitcoin’s recent pattern has included more alignment with gold than with tech, as investors increasingly use non-yielding assets to hedge against potential dollar weakness. It points to a prior U.S. Treasury move in August to expand liquidity support buybacks, which it says hurt the dollar and benefited assets like bitcoin and gold.

Latest closeGold $4,445.30 ▲1.2%|WTI crude $97.01 ▲4.3%|Bitcoin $77,087.06 ▼1.5%

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