Bitcoin Drops After Sudden Energy Market Surge

Bitcoin falls back below 66,000 dollars, driven by a shock from energy markets. The rise in oil revives inflationary tensions and reshuffles the cards of monetary expectations. This movement recalls a now well-established reality: cryptos evolve in close correlation with macroeconomic dynamics. In this context, investors adjust their exposure to a more uncertain environment.

Oil triggers a global inflation shock

The decline in bitcoin comes amid extreme tension in energy markets. The closure of the Strait of Hormuz by Iran caused a rapid increase in oil prices, directly fueling inflation expectations.

Thus, this dynamic is “objectively unsustainable”, a term reflecting the magnitude of the perceived shock on the US economy. This situation immediately impacted financial markets, with a sharp rise in US bond yields, especially on the 10-year.

Several key elements explain this chain reaction in the markets :

• A sharp rise in oil prices linked to geopolitical tensions ;
• Acceleration of inflation expectations in the United States ;
• Strong increase in bond yields ;
• A revision of expectations regarding the Fed’s monetary policy ;
• A generalized retreat of risky assets, including bitcoin.

This movement is accompanied by a rapid change in monetary expectations. Where investors anticipated rate cuts, the scenario now moves toward a prolonged pause or even tightening. In this climate, bitcoin recorded an almost 4 % drop during the day, breaking a key psychological threshold below 66,000 dollars.

A weakened market structure for bitcoin

Technically, bitcoin’s dynamic deteriorates significantly. The breach of important support levels has established a market structure marked by descending peaks, indicating a progressive weakening of buying pressure. Analysts now identify the 70,000 dollar zone as a tough resistance to break, while the next support levels are between 65,000 and 64,000 dollars. This configuration fuels expectations of a continuation of the short-term correction.

Another signal draws observers’ attention: bitcoin could record a sixth consecutive month of decline, a pattern rarely seen since 2018. This trend reflects a gradual repositioning of capital in an environment where risky assets lose appeal amid rising bond yields. The market seems to enter a waiting phase, dominated by caution and reduced exposure.

“Inflation expectations have deteriorated so much that the market now behaves as if an emergency rate hike by the Fed is imminent,” added Adam Kobeissi, founder of Kobeissi.

In the long term, this sequence raises questions about bitcoin’s ability to evolve independently of macroeconomic cycles. While some investors still see it as a hedge against inflation, recent reactions show it remains strongly correlated with global liquidity conditions. The evolution of inflation and Federal Reserve decisions are therefore expected to remain the main catalysts in the coming weeks, in a market where the slightest surprise can quickly reverse trends.