The resurgence of the Iran war premium has had a significant impact on the cryptocurrency market. Over the past 24 hours, bitcoin has declined by 2.1% to $75,633, while ether has dropped by 3.4% to $2,244. This downturn is attributed to the surge in Brent crude oil prices, which have jumped 7.1% to $126.41 per barrel, the highest level in four years, due to reports that President Trump is being briefed on new military options against Iran.
The potential deployment of hypersonic missiles to the Middle East has further escalated tensions, resulting in a war premium that is driving up oil prices. As a result, the cryptocurrency market is feeling the effects, with most major assets experiencing declines. The only exception is dogecoin, which has seen a 3.8% increase in value.
The current situation has led to a risk-off sentiment in the market, with the dollar gaining and bonds sliding. The resilience of bitcoin is being tested, and it remains to be seen how the market will respond to the ongoing developments in the Middle East. According to Fernando Lillo, director at Zoomex, a break above $80,000 for bitcoin requires a resolution to the conflict and a subsequent drop in oil prices.
Lillo suggests that a potential lifting of restrictions in the region could lead to a relief rally and pave the way for bitcoin to consolidate above $80,000.