The specter of war with Iran has reemerged, and the cryptocurrency market is feeling the pinch. Bitcoin's value slid 2.1% over the past 24 hours to $75,633 during Asian trading hours on Thursday, marking a 3% decline for the week. This downturn coincided with a significant 7.1% jump in Brent crude oil prices to $126.41 per barrel, the highest intraday level in four years, following an Axios report that President Donald Trump is scheduled to receive a briefing on new military options against Iran. The report also indicated that U.S.
Central Command has requested the deployment of hypersonic missiles to the Middle East, which would be the first combat deployment of such weapons by American forces. The Strait of Hormuz has been effectively closed since the onset of the conflict in late February, severely restricting the flow of crude oil, natural gas, and oil products. This development has led to the reemergence of a 'war premium,' a component of an asset's price driven by the risk of conflict rather than fundamental supply and demand. Brent crude has been carrying a substantial war premium throughout the year, with prices increasing by over 100% year-to-date.
The global benchmark is currently on a nine-day winning streak, its longest since May 2022, and has risen by over 100% year-to-date. Ether experienced a 3.4% decline to $2,244 and is down 4.4% for the week. XRP fell 2.1% to $1.37, representing a 3.7% decrease over seven days. Solana lost 2.6% to $82.62, while BNB shed 1.9% to $615.
The only notable exception among the top 10 cryptocurrencies, excluding stablecoins, is dogecoin, which saw a 3.8% increase on the day and a 10.1% rise over the week to $0.10. Risk assets are broadly retreating, with Nasdaq 100 futures erasing an earlier 1.1% rally fueled by strong earnings reports from Alphabet and Amazon. The MSCI Asia Pacific share index fell 1.4%, and European equities are poised to drop 1% at the open.
The dollar has gained strength, while bonds have declined as the surge in oil prices and a hawkish Federal Reserve have reduced demand for fixed-income assets. Treasury 10-year yields remain near their highest levels since July, and Japan's 10-year notes have reached their highest level since 1997, according to Bloomberg. Bitcoin's ability to withstand the early stages of the conflict is being tested.
The cryptocurrency has maintained a narrow trading range between $74,000 and $78,000 throughout April, despite oil prices rising from $98 to $126 and the conflict entering its third month. Each escalation in the conflict has resulted in sharper declines, and the cumulative impact is beginning to manifest. Bitcoin is now $50,000 below its all-time high of $126,000, reached in October 2025.
Fernando Lillo, director at the exchange Zoomex, noted in a report that any break above $80,000 would require the war premium to dissipate. 'Bitcoin is attempting to break through the crucial $80,000 level, which would necessitate a resolution to the Middle East conflict and, consequently, a decline in Brent crude oil prices below $100 per barrel,' he stated. 'One is impossible without the other, and the Trump administration's plans for a prolonged naval blockade of Iran are becoming a significant obstacle.' Lillo outlined a possible scenario in which the Trump administration lifts the blockade in the coming days and frames it as a response to 'positive steps' by Iran, potentially triggering a relief rally. 'A potential lifting of restrictions in the region and lower oil prices could prompt an accelerated influx of capital into risk assets, paving the way for Bitcoin to consolidate above $80,000 and move toward $85,000.'