Oil Surge Sparks Bitcoin Drop Below $66,300

Geopolitical fears trigger mass crypto selloff, liquidations, and steeper altcoin losses

  • Bitcoin’s price fell to $66,300 as escalating U.S.-Israel military action against Iran triggered a broad crypto market selloff.
  • Oil prices surged after attacks in the Strait of Hormuz, raising inflation fears and reducing odds of a near-term Federal Reserve rate cut.
  • The total crypto market cap dropped 1.8% to $2.36 trillion, with approximately $350 million in leveraged positions liquidated.
  • Altcoins like Cardano and Solana led losses, falling over 5% and 4.6% respectively, while Ethereum dropped below $2,000.

Cryptocurrency markets tumbled on Sunday night as geopolitical tensions in the Middle East escalated, with Bitcoin falling to $66,300. The selloff was triggered after U.S. President Donald Trump stated joint U.S.-Israel military strikes on Iran would continue until “all objectives” were met. Consequently, the overall crypto market cap dropped 1.8% to around $2.36 trillion.

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According to data from CoinGlass, approximately $350 million in leveraged positions was liquidated over the past day. This included $238 million from long positions and $114 million from short bets. However, retail sentiment for Bitcoin on Stocktwits remained within ‘bullish’ territory.

The conflict spurred a sharp rise in oil prices, marking the biggest surge in four years after three tankers were attacked. This uptick threatens crypto by signaling higher inflation and lowering expectations for a March interest rate cut. The CME Fed Watch Tool showed a 95.6% probability rates would stay the same.

Meanwhile, altcoins suffered steeper losses than Bitcoin. Cardano led the decline, falling more than 5%, followed by Solana which dropped 4.6%. ethereum’s price fell around 4%, edging below the $2,000 level to trade near $1,955. Cryptocurrencies traded in line with equities, as the SPDR S&P 500 ETF fell 0.68% in after-hours trading.

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