The resurgence of the Iran war premium has negatively impacted the cryptocurrency market. Over the past 24 hours, bitcoin has fallen by 2.1% to $75,633, while ether has dropped by 3.4% to $2,244. This decline is attributed to the significant increase in Brent crude oil prices, which have risen by 7.1% to $126.41 per barrel, the highest level in four years.
The price surge is a result of reports that President Donald Trump is set to receive a briefing on new military options against Iran, which has led to a war premium being factored into the price of assets. The global benchmark for oil has been on a nine-day winning streak, with prices increasing by over 100% year-to-date.
Other cryptocurrencies such as XRP and Solana have also experienced declines, while dogecoin has seen a 3.8% increase. The surge in oil prices and a hawkish Fed have led to a decline in risk assets, with the dollar gaining and bonds sliding. Bitcoin's ability to withstand the early stages of the war is being tested, with the asset struggling to break above the $80,000 level.
According to Fernando Lillo, director at exchange Zoomex, a break above $80,000 would require the war premium to unwind and a resolution to the Middle East conflict.