On Monday, March 9, the price of Bitcoin briefly touched a one-day low of $65,727 as market sentiment remained subdued amid concerns over rising oil prices and escalating tensions between the US and Iran.
Conclusion
- The price of Bitcoin briefly fell to the $65,000 support level as investors reacted to the rise in oil prices.
- The ongoing US-Iran conflict has disrupted trade in the Strait of Hormuz, a global oil distribution hub.
According to crypto.news, the price of Bitcoin (BTC) fell 3.5% to a one-day low of $65,727 on Monday, extending its decline for a fifth day and losing nearly 11% during that period. The world’s largest cryptocurrency asset is down nearly 5% in the past month.
Bitcoin prices fell after investors shied away from riskier assets amid geopolitical tensions and macroeconomic volatility.
The bell appears to mimic traditional stock markets. It is worth noting that futures related to traditional market indices such as the Dow Jones Industrial Average fell 1,026 points to 46,696 points, while the S&P 500 and Nasdaq-100 fell 136 points and 440 points before the US markets resumed.
Investor sentiment worsened as the ongoing military conflict between the US and Iran repeatedly blocked the Strait of Hormuz, a global oil distribution point. This caused a sudden increase in oil prices. Indeed, global oil prices rose above $100, the first time crude oil has risen above that level in nearly four years.
Market volatility in the region began after Israeli warplanes attacked several warehouses and fuel refineries in the region on Saturday, March 7. Subsequently, Iran responded with missile and drone attacks on ships and military bases in the Persian Gulf region.
As the market’s risk sentiment has subsided, investors are concerned about whether the price of Bitcoin will decline in proportion to traditional stock markets. The bell has historically moved in tandem with stocks, especially during periods of macroeconomic uncertainty.
In this context, investors are concerned that the rise in oil prices may lead to inflation in the US and a possible delay in interest rate cuts. The Federal Reserve’s dodgy stance could reduce liquidity, which has often acted as a headwind for risk assets like Bitcoin.
Bitcoin fell to a one-day low of $65,000 support during the closing hours of US trading on Sunday. This level has acted as a strong demand zone for the past few months, and the asset has been able to recover as it has clawed back some of its weekend losses.
At press time, Bitcoin had recovered above $68,000. A quick recovery indicates that investors have already absorbed the latest market shock.
