Bitcoin’s price slipped toward the $69,000 mark on Thursday as escalating tensions centered on Iran rippled across the Middle East, dampening risk appetite throughout global markets. Attacks targeting energy infrastructure coupled with broader geopolitical uncertainty have led market participants to adopt a more cautious stance. While the recent upheaval has roiled cryptocurrencies, price swings have remained more contained compared with other asset classes.
Energy Prices Surge Spark Inflation Fears
Oil once again approached the $100-per-barrel threshold, thrusting energy markets into the spotlight. U.S. officials signaled there are no plans to restrict crude exports, which quickly reversed sharp declines in oil prices. Persistently rising energy costs have strengthened inflationary pressures, fueling speculation that central banks may hold off on anticipated interest rate cuts as they reassess their monetary policies.
Stock Markets Suffer Sharp Losses
Mounting uncertainty has magnified selling pressure in equity markets. The S&P 500 and Nasdaq both dropped about 1% in morning trading, moving closer to their lowest levels seen in 2026. As investors brace for the broader economic fallout from an energy shock, their aversion to riskier assets has noticeably intensified.
Precious metals have not been spared by the market-wide retreat. Gold tumbled by 5%, falling to around $4,500 per ounce, while silver slumped 6.6%. This pulled both metals into a sharp correction after their robust gains in recent weeks, signaling that investors are broadly offloading risk across a range of asset classes.
Cryptos See Milder Declines
Compared to the volatility in equities and commodities, digital assets displayed relative stability. Bitcoin slipped 2.6% to trade at $69,400, while top tokens including ether, XRP, BNB, and solana held their losses below 3%. The CoinDesk 20, a broad market index, registered a 2.1% decline—underscoring that crypto has so far weathered the storm with less volatility than traditional markets.
Stocks tied to the crypto sector also declined, though losses remained modest. Coinbase shares fell 1.7%, Strategy lost 2.6%, and Circle—the stablecoin issuer—dropped 6%, pulling back after more than doubling in value over the last three weeks.
Alvin Kan, Chief Operating Officer at Bitget Wallet, remarked that the simultaneous declines in gold and Bitcoin suggest investors are not simply flocking to safe havens, but instead are broadly scaling back risk.
As energy prices climb, inflation expectations are mounting—creating an environment where rates could remain higher for longer and liquidity may tighten, Kan said.
According to Bryan Tan, a trader at Wintermute, Bitcoin actually outperformed gold by about 20% during the initial stage of the Iran-related tensions. However, the market’s inability to sustain a move above $75,000 has kept overall sentiment cautious.
Each new headline about the conflict is rapidly shifting market sentiment. The strong correlation with oil prices suggests that, at present levels, maintaining defensive positions could prove effective, Tan explained.
