BTC Drops 2.2% as Oil Spikes to One-Month High on Ukraine and Iran Tensions

Bitcoin retreated up to 2.2% on Monday after briefly touching $84,254 on Bitstamp, its highest level since Wednesday, before sliding as geopolitical tensions in Eastern Europe and the Middle East reignited concerns over global energy supply. According to TradingView data monitored by Cointelegraph, BTC/USD failed to sustain gains above the $84,000 threshold into the Wall Street open, reflecting renewed risk-off sentiment across markets.

The sell-off coincided with sharp moves in crude oil. WTI crude spiked past $94 per barrel while Brent crude reached $107.90, its highest level since September 16. Ukrainian President Volodymyr Zelenskyy accused Russia of continuing to target energy infrastructure despite a moratorium announced by US President Donald Trump, while Iran reported that an oil tanker was struck and set ablaze in the Strait of Hormuz. Traders are also bracing for key US inflation prints, with Consumer Price Index (CPI) data due Wednesday and Producer Price Index (PPI) data on Thursday, both of which remain sensitive to energy price swings.

Not all analysts viewed the oil rally as justified. Robin Brooks, former chief FX strategist at Goldman Sachs, argued that markets had priced in too much risk premium, noting that oil volumes out of the Persian Gulf remain around 13 million barrels per day, well above the lows seen during the height of the March–April conflict. Despite improving transit data through the Strait of Hormuz, prices have nonetheless climbed back to multi-week highs.

On the derivatives side, QCP Capital observed a dual posture in Bitcoin options markets. Implied volatility held firm even as spot settled back into its range, while risk reversals showed a less pronounced put premium than usual. Traders appeared defensively positioned yet still left the door open for an upside breakout toward $90,000, keeping bid support concentrated around the $82,000 level as the new week begins.