The global markets faced a "crude" awakening late Sunday as escalating geopolitical tensions in the Middle East sent energy prices into a frenzy, casting a shadow over the cryptocurrency sector. While oil futures witnessed a historic surge, Bitcoin (BTC) struggled to maintain its footing, slipping nearly 2% in a matter of minutes.
Oil Hits 2022 Highs Amid Supply Warnings
As U.S. futures markets opened, the energy sector felt an immediate shockwave. According to data from the decentralized platform Hyperliquid, crude oil prices catapulted from $95 to $113.70 per barrel. This mark represents the highest valuation for oil since April 2022, a peak last seen during the early stages of the Russia-Ukraine conflict.
The primary catalyst? A dire warning from Iraq. Officials cautioned that approximately 3 million barrels of daily production are currently at risk due to Iranian threats targeting tankers in the Strait of Hormuz. This critical maritime chokepoint is essential for global energy stability, and any disruption there triggers instant volatility.
Bitcoin’s "Risk-Off" Reaction
While oil was climbing, Bitcoin experienced a sharp, localized sell-off. At approximately 22:30 UTC on Sunday:
BTC Price Drop: Bitcoin fell from $66,960 to $65,725 in just 15 minutes.
Recent Context: This dip marks the fourth consecutive day of decline for the leading cryptocurrency, which had reached a high of $73,770 only last Wednesday.
Current Standing: At the time of writing, Bitcoin has staged a modest recovery, hovering around the $66,272 mark.
Analysts suggest that the sudden spike in energy costs often triggers a "risk-off" sentiment, where investors temporarily pull back from volatile assets like crypto to reassess the broader economic impact of inflation and supply chain shocks.
The Political Perspective: Trump Unfazed
Despite the 20% jump in futures, President Donald Trump expressed confidence that the spike would be short-lived. Speaking to reporters on Saturday, he dismissed the need for immediate panic regarding the Strategic Petroleum Reserve (SPR).
"We thought oil prices would go up, and they will. They’ll also come down. They’ll come down very quickly," Trump stated. "We have plenty of oil. Our country has a massive amount... it will be settled very quickly."
#hive #bitcoin #finance #waivio Earn (Rewards) #life #creativecoin #blog #vlog #crypto #inleo #dbuzz #photography #HBD #leo #trump #USA