The resurgence of the Iran war premium has taken a toll on the cryptocurrency market. Over the past 24 hours, bitcoin has fallen 2.1% to $75,633, while ether has declined 3.4% to $2,244. This downturn is attributed to the significant increase in Brent crude oil prices, which have surged 7.1% to $126.41 per barrel - the highest level in four years. The rise in oil prices is a direct result of reports that President Donald Trump is set to receive a briefing on new military options against Iran, sparking fears of an imminent conflict.
The potential deployment of hypersonic missiles to the Middle East has further exacerbated the situation, leading to a war premium that is driving up oil prices. As a result, the cryptocurrency market is feeling the effects, with most major coins experiencing significant losses. The only exception is dogecoin, which has seen a 3.8% increase in value over the past 24 hours.
The current market trend suggests that risk assets are being sold off, with the Nasdaq 100 futures and MSCI's Asia Pacific share index experiencing declines. The dollar has gained value, while bonds have slid, and Treasury 10-year yields are nearing their highest levels since July. Bitcoin's ability to withstand the early stages of the conflict is being tested, and the asset is now $50,000 below its October 2025 all-time high of $126,000.
According to Fernando Lillo, director at exchange Zoomex, any break above $80,000 will require the war premium to unwind and a resolution to the Middle East conflict. Lillo suggests that a possible scenario where the Trump administration lifts the blockade in the coming days could trigger a relief rally, paving the way for Bitcoin to consolidate above $80,000 and move towards $85,000.