Heightened tensions in the Middle East are once again weighing on the cryptocurrency market, as sharp gains in oil prices drive Bitcoin and major digital assets lower. Escalations, especially involving the possibility of US military action against Iran, have dampened global risk appetite.
Impact of Middle East tensions on markets
According to a report by Axios, US President Donald Trump has been briefed on potential new military steps against Iran. In this context, US Central Command has requested the deployment of hypersonic missiles to the region. Such developments are fueling volatility, particularly in commodities like oil, and prompting investors to move away from risk assets.
Since the end of February, ongoing conflict has effectively shuttered the Strait of Hormuz, restricting global flows of oil, gas, and other energy products. The so-called “war premium,” referring to asset prices driven up by geopolitical risk, has been most evident this year in Brent crude. After climbing for nine straight days, Brent surged to its highest price in four years and has gained over 100% since the start of the year.
Meanwhile, leading cryptocurrencies such as Bitcoin and Ethereum have seen sharp drops amid this tense environment.
Notable price shifts in cryptocurrencies
Bitcoin fell 2.1% over the past 24 hours to $75,633, bringing its weekly loss close to 3%. Data from CryptoAppsy indicates investors are increasingly anxious, with Bitcoin struggling to find a clear direction in the $74,000 to $78,000 range, and heightened volatility following abrupt sell-offs.
Ethereum declined 3.4% to $2,244, and is down 4.4% for the week. XRP slipped 2.1% to $1.37, losing 3.7% over seven days. Solana dropped 2.6% to $82.62. Notably, among the ten largest cryptocurrencies, only Dogecoin moved higher, jumping 3.8% on the day and 10.1% for the week to reach $0.10.
Fernando Lillo, an executive at Zoomex exchange, remarked that for Bitcoin to decisively break above $80,000, the war premium needs to ease and Brent crude must fall below $100 a barrel. He also pointed out that continued US-led naval blockades on Iran are complicating the outlook.
Global financial market snapshot
As risk assets slump worldwide, Nasdaq 100 futures lost ground after strong earnings from Alphabet and Amazon triggered a 1.1% rally that quickly reversed. The MSCI Asia Pacific index dropped 1.4%, while European markets opened about 1% lower.
The strengthening US dollar and accelerating bond sell-offs are driving investors toward safer instruments. US 10-year Treasury yields reached their highest level since July, while Japanese 10-year bonds climbed to heights not seen since 1997.
Bitcoin’s long-standing stability appears to be faltering. Even as Brent crude rose from $98 to $126, Bitcoin remained within the $74,000–$78,000 band during the initial period of the conflict. Yet repeated fresh declines suggest that downward momentum is solidifying across the crypto market.
Currently, BTC trades nearly $50,000 below its record high of $126,000 set in October 2025. Experts believe that if Middle East restrictions ease and oil prices subside, a renewed push above $80,000—possibly up to $85,000—could quickly re-enter the discussion for Bitcoin.
Brent crude remains near four-year highs while Bitcoin and Ethereum have pulled back, reflecting global market uncertainty. The initial publication appeared on COINTURK.
