Bitcoin slumps to $66,000 as oil price spike rattles Asian stock markets

The price of bitcoin (BTC) fell following last week’s brief rally, as a spike in oil prices weighed on Asian equity markets on Monday.

According to The Block’s bitcoin price page, the cryptocurrency dropped 1.87% in the past 24 hours to trade at $66,010 at the time of writing. This is a 10% slide from the recent peak of $73,500 recorded on March 5.

This pullback brought bitcoin back to levels seen before the short-lived surge, which aligns with research firm CryptoQuant’s previous analysis that last week’s price action was more of a “relief rally” than a start of a new bull cycle.

“BTC’s move to $66K is driven by a macro-driven pullback,” said Dominick John, analyst at Zeus Research. “Elevated geopolitical risk, particularly the lack of de-escalation in the Middle East, pushed markets into a more risk-off posture, while rising oil prices are adding to inflation concerns and tightening global financial conditions.”

Oil shock

Due to persisting tensions in the Middle East, the price of crude oil surged past $110 per barrel, rising 22% on the day, and 72% in the past month, according to Trading Economics.

U.S. President Donald Trump commented on Sunday that a short-term surge in oil prices is “a very small price to pay,” adding that prices would stabilize once “the destruction of the Iran nuclear threat is over.”

“The rising price of oil is a major factor in driving up inflation and could drag down global economic growth, given that it is used as an input for so many products across different industries,” said Jeff Mei, COO at BTSE. “This concern is what is causing bitcoin to dip. That being said, bitcoin’s price has proven to be more resilient than in past bear markets, and this could be because of the larger makeup of institutional holders this time around.”

The rise in oil prices has affected major Asian stock markets, particularly in economies heavily dependent on crude imports. Japan’s Nikkei has plunged 7% after Monday’s market open, while South Korea’s KOSPI has dropped 7.9%. Hong Kong’s Hang Seng Index has fallen 2.7%, and the Shanghai Composite Index has declined 1.4%.

In recent years, bitcoin has become increasingly correlated with equities market, displaying sensitivity to geopolitical volatility. The Block’s 30-day Pearson correlation for bitcoin shows that it has a 88% correlation to the Nasdaq Composite as of March 6.

What to watch for

Additionally, bitcoin exchange-traded fund flows have recently turned negative, putting pressure on the base asset price. The funds saw $576.6 million in net outflows last Thursday and Friday combined.

Zeus Research’s John said $65,000 acts as the near-term support for bitcoin as the market digests macro volatility, while the $68,000-$69,000 range represents a key resistance zone. A break above that level would help restore short-term bullish momentum, he said.

“Potential catalysts include continued ETF inflows, clearer crypto regulation, and improving macro liquidity if central banks begin easing. Together, these factors could drive more institutional capital into the market,” John said, adding that traders should watch for this week’s U.S. consumer price index report and initial jobless claims to gauge the level of inflation in the country.

“Until the global geopolitical situation improves, it is unlikely to see any stability or optimism to drive a risk-on sentiment that would push for higher crypto prices,” said Nick Ruck, director at LVRG Research.