Cryptocurrency Market Sees Decline as Oil Prices Surge to Four-Year High

The resurgence of the Iran war premium has led to a decline in the cryptocurrency market. Over the past 24 hours, bitcoin has fallen 2.1% to $75,633, while ether has dropped 3.4% to $2,244.

This downturn is attributed to the surge in Brent crude oil prices, which have reached a four-year high of $126.41 a barrel. The increase in oil prices 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 Strait of Hormuz has been effectively shut down since the war began, resulting in a significant increase in oil prices.

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, with XRP falling 2.1% to $1.37 and Solana dropping 2.6% to $82.62.

The only cryptocurrency to experience an increase is dogecoin, which has risen 3.8% to $0.10. The surge in oil prices has also led to a decline in risk assets, with the Nasdaq 100 futures erasing an earlier 1.1% rally and the MSCI's Asia Pacific share index falling 1.4%. The dollar has gained, and bonds have slid as a result of the increase in oil prices and a hawkish Fed. Bitcoin's ability to withstand the early stages of the war is being tested, with the asset having held a tight band between $74,000 and $78,000 through April.

However, the cumulative damage of each escalation headline is starting to show, with bitcoin 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 requires the war premium to unwind. Lillo believes that a resolution to the Middle East conflict and a drop in Brent crude oil prices below $100 per barrel are necessary for bitcoin to break the key $80,000 level.

He also flags a possible scenario where the Trump administration lifts the blockade in coming days, leading to a relief rally and an accelerated influx of capital into risk assets.