The resurgence of the Iran war premium has taken a toll on the cryptocurrency market. Over the past 24 hours, bitcoin has dropped 2.1% to $75,633, while ether has fallen 3.4% to $2,244. This decline is attributed to the surge in Brent crude oil prices, which have jumped 7.1% to $126.41 a barrel, the highest level in four years. The rise in oil prices is a result of reports that President Trump is being briefed on military options for Iran, leading to a war premium that is affecting the cryptocurrency market.
Other cryptocurrencies, such as XRP and Solana, have also experienced losses, while dogecoin has seen a 3.8% increase. The global market is experiencing a decline in risk assets, with the Nasdaq 100 futures and European equities also witnessing losses.
The dollar has gained, and bonds have slid, as the surge in oil and a hawkish Fed have reduced demand for fixed income. According to Fernando Lillo, director at exchange Zoomex, any break above $80,000 for bitcoin requires the war premium to unwind, which would necessitate a resolution to the Middle East conflict and a drop in Brent crude oil prices below $100 per barrel.