The resurgence of the Iran war premium has had a significant impact on 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 downturn is largely 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 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.
The potential deployment of hypersonic missiles to the Middle East has further exacerbated the situation, leading to a war premium that is driving up oil prices. As a result, the cryptocurrency market is feeling the effects, with most major coins experiencing a decline. The only exception is dogecoin, which has seen a 3.8% increase in value.
The current situation has led to a decline in risk assets across the board, with the Nasdaq 100 futures and European equities also experiencing a downturn. The dollar has gained value, while bonds have slid, and Treasury 10-year yields have held near their highest level since July. Bitcoin's ability to withstand the early stages of the war is being tested, and the asset is 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 will require the war premium to unwind, which is unlikely without a resolution to the Middle East conflict and a subsequent drop in Brent crude oil prices.