Bitcoin risks falling as oil prices are rising again above $100 per barrel today. This comes as the US and Israel strike new Iranian energy infrastructure linked to power plants, even after U.S. President Donald Trump announced a temporary halt.
Bitcoin Under Pressure as Iran Denies Peace Talks amid Trump’s 5-Day Pause
Brent crude oil prices surge back above $102 per barrel and WTI crude oil prices jump more than 3% to $91 per barrel on March 24. Oil prices recovered as Iran pushed back against President Donald Trump’s claims, denying any talks to end the conflict.
As CoinGape reported, Bitcoin sharply rose above $71,000 as oil prices plunged about 10% after Trump postponed planned strikes on Iranian power plants and energy infrastructure for 5 days.
Also, he claimed about “very good and productive” talks with Iranian officials over the prior two days, describing the conversations as “in-depth, detailed, and constructive.”
Trump extended an earlier 48-hour ultimatum to strike Iranian power plants if disruptions continued in the Strait of Hormuz. Iran warned of attacks on energy infrastructure in the Middle East in retaliation amid threats and strikes by the US and Iran.
US-Israel Hit Energy Facilities in Iran Despite the Pause
Despite Trump’s 5-day pause, the US and Israel hit Iranian energy facilities in new air strikes. Reports claimed attacks on natural gas infrastructure in Isfahan and a gas pipeline linked to the Khorramshahr power plant.
Iranian media claimed damage to energy facilities, while Israel described the actions as necessary responses in the ongoing conflict. Iran has retaliated with repeated drone and missile strikes targeting Israel and Gulf countries hosting US military assets.
Meanwhile, Saudi Arabia and the UAE are “inching toward” joining the US-Israeli war against Iran, WSJ reported. Saudi Arabia has quietly granted the US access to King Fahd Air Base after Iran began striking Saudi energy facilities and Riyadh directly.
Crown Prince Mohammed bin Salman is now described as being close to a decision to formally join the offensive. A source said “It is only a matter of time before the Kingdom enters the war.”
Attacks on energy infrastructure in the Middle East will severely impact global crude oil supply, with oil prices set to rise faster. This could trigger selling pressure on Bitcoin.
Will Bitcoin Drop Back to $68K?
Bitcoin has jumped 4% over the past 24 hours, with the price currently trading at $70,911. It spiked from the 24-hour low of $67,508 to $71,782 after Trump announced the 5-day pause. Furthermore, trading volume has increased by 60% in the last 24 hours, indicating a rise in interest among traders.
CoinGlass data showed buying sentiment in the derivatives market. At the time of writing, the total BTC futures open interest jumped 1.80% to $47.88 billion in the last 4 hours. BTC futures OI on CME and Binance have also climbed 0.70%.
However, experts such as SkyBridge Capital founder Anthony Scaramucci warned Bitcoin bear market until Q4 this year as the 4-year cycle remains intact. Moreover, crypto analysts have highlighted that BTC Coinbase premium index has turned negative again.
BTC Coinbase Premium Index. Source: CryptoQuantSource: https://coingape.com/bitcoin-risks-fall-as-us-israel-strikes-irans-energy-facilities-despite-trumps-5-day-pause/
