Bitcoin fell below the $70,000 threshold in the international market on Thursday. The rise in energy prices and the US Federal Reserve’s tightening of policy interest rates beyond expectations were effective in this decline.
Increase in Energy Prices and Middle East Tension
While sharp movements were seen in the global crypto market, oil prices increased rapidly. While the barrel price of Brent oil rose above 114 dollars, the price of Oman oil exceeded the level of 150 dollars for a short time. This activity occurred in connection with the escalating tension between Iran and Israel and the concern that attacks on critical energy infrastructures in the Middle East could lead to interruptions in energy supply.
There was also a high increase in European natural gas futures contracts. There was a retreat in the US Nasdaq-100 index futures. With these developments, Bitcoin lost approximately 4 percent of its value in the last 24 hours. Similar declines were observed in other risky asset categories.
Fed’s Interest Rate Decision and Market Expectations
At its last meeting, the US Federal Reserve continued to keep the benchmark interest rate in the range of 3.50-3.75 percent. Although the decision was in line with market expectations, Fed officials pointed out the possibility of high inflation due to geopolitical risks and rising energy prices. This situation led to a decrease in risk appetite in the markets and a strengthening of the US dollar.
While expectations that the Fed could keep interest rates high for a long time increased, investors began to see the possibility of possible interest rate cuts in 2026 as weak. Some market actors brought up the possibility of additional interest rate increases in the future, albeit low. If interest rates remain high for a long time, it may cause high-yield investment instruments to appear more attractive and risky assets such as Bitcoin to remain under pressure.
Widespread Selling Wave and Geopolitical Impact
After trading just above $75,000 at the beginning of the week, the Bitcoin price dropped significantly to below $70,000 within a few days. While there was a decline not only in cryptocurrencies but also in S&P 500 and other global stock indices, profit sales also came to the fore in precious metals.
With geopolitical tensions remaining high, it is stated that Iran is attacking some energy infrastructures in the region. These attacks, which extend to Qatar, which is critical for liquefied natural gas exports in the region, have raised the fear that there may be disruptions in the supply chain. US officials are considering additional military measures to ensure the security of sea lanes in the Strait of Hormuz, which is strategically important for global oil trade.
If energy prices remain at high levels and central banks continue their tight monetary policy, Bitcoin’s course may continue parallel to general economic conditions. It is considered that the $70,000 level has now begun to form a psychological threshold and downside risks continue due to fluctuations in commodity and geopolitical developments.
