A rally in cryptocurrencies that had been cheered by investors has quickly faded, with Bitcoin’s (BTC) price falling back below the key support level of $70,000 U.S.
In early trading on March 6, Bitcoin was trading at $69,930 U.S. after climbing as high as $74,000 U.S. earlier in the week.
Other cryptocurrencies are in retreat as well, with Ethereum (ETH), Solana (SOL), and XRP (XRP) each down more than 2% in the past 24 hours.
Crypto has been volatile and falling alongside U.S. stocks since the American military attacked Iran on Feb. 28.
The intensifying war in the Middle East has pushed America’s crude oil prices to $85 U.S. per barrel, the highest level in years and leading to what some analysts are calling an “oil shock.”
Brent crude oil, the international standard, has risen 42% since the start of this year and is approaching $90 U.S. a barrel.
The surge in energy costs, along with growing uncertainty around the Middle East, has led to a risk-off sentiment among investors that is leading to lower crypto prices, say analysts.
This is not the first time that Bitcoin and other cryptocurrencies have failed to build on a short-term rally.
BTC has largely traded in a narrow range of $65,000 U.S. to $70,000 U.S. since the start of the year. Previous attempts to breakout above $70,000 U.S. have failed.
