Bitcoin fell below $73,000 on Thursday, hitting its lowest level since April 13, as renewed military strikes between the U.S. and Iran rattled global markets. The escalation pushed oil prices higher and dashed hopes for a permanent ceasefire.
According to the New York Times, U.S. strikes in southern Iran prompted retaliation from Iran's Revolutionary Guards, who targeted the American base used for the attacks. Kuwait, which hosts five U.S. bases, reported intercepting hostile drones and missiles.
The conflict dimmed expectations of a deal to stabilize the Strait of Hormuz, a critical oil shipping route. On Polymarket, odds of a permanent ceasefire by month-end plummeted to 8% from a weekend peak of 70%. Brent crude surged nearly 4% to around $96 per barrel, stoking inflation fears.
Crypto markets reacted in tandem with risk assets. Rony Szuster, head of research at Mercado Bitcoin, noted that investors are focused on geopolitical risks and upcoming U.S. inflation data, particularly Thursday's PCE report.
"The crypto market remains structurally resilient, supported by long-term accumulation and the strength of AI and blockchain infrastructure narratives," Szuster said. However, he added that in the short term, the market is sensitive to geopolitical developments and institutional flow patterns.
What's Trending
- Bitcoin could head lower as a $150 billion Treasury operation nears, potentially draining liquidity from May 28 to June 5.
- BlackRock's bitcoin ETF saw a record $528 million outflow, the second-largest single-day net withdrawal since its launch.
- Samsung units are set to buy a $408 million stake in Dunamu, South Korea's largest crypto exchange.
- Oil prices jumped over 2% after Iran targeted a U.S. airbase in retaliation.
Today's Signal
- Bitcoin trades below the 50-week exponential moving average of $84,000.
- No clear RSI divergences on the weekly chart indicate a lack of market direction.
- The next key support level to watch is $68,000.
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