Bitcoin Falls 2% as Oil Spikes 20% on Mideast Supply Fears

Edgen Crypto

·Mar 12 2026, 07:10

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Key Takeaways

escalating geopolitical conflict in the Middle East triggered sharp, divergent moves in global markets. Fears of a major energy supply disruption caused oil prices to spike, while investors shed riskier assets like Bitcoin, which has now fallen for four consecutive days.

Oil prices spiked nearly 20% to $113.7 per barrel, the highest level since April 2022, on fears of a supply disruption in the Strait of Hormuz.
Bitcoin fell almost 2% in 15 minutes, dropping from $66,960 to a low of $65,725 as US futures markets opened.
The market move signals a classic 'risk-off' environment, with capital flowing out of speculative assets and into commodities directly impacted by the crisis.

Oil Spikes Nearly 20% as Bitcoin Retreats

Fears of a global energy crisis rattled markets on Sunday, causing oil prices to spike nearly 20% while Bitcoin fell almost 2% in just 15 minutes. As US futures markets opened, the price of oil jumped from $95 to $113.7 per barrel, according to data from derivatives platform Hyperliquid. This marks the highest price for oil since April 2022. The price has since moderated to around $105 per barrel. Coinciding with the move, Bitcoin's price dropped from $66,960 to $65,725 by 10:30 pm UTC before recovering slightly to $66,272. The decline extends a losing streak for the digital asset to four consecutive days.

Strait of Hormuz Threat Triggers Risk-Off Sentiment

The sell-off in risk assets was triggered by an escalation in Middle Eastern tensions. Iraq issued a warning that approximately 3 million barrels of daily oil production could be disrupted due to Iranian threats against tankers in the strategic Strait of Hormuz. This development prompted investors to de-risk portfolios, selling speculative assets like cryptocurrencies. The reaction marks a shift in market sentiment from the prior week, when Bitcoin initially climbed from below $64,000 to a high of $73,770 as the conflict first unfolded.