Bitcoin slides under $69K as oil spikes on conflicting US Iran signals

Bitcoin fell below $69,000 on Thursday morning as escalating tensions between the US and Iran weighed on global markets and pushed investors toward defensive positioning.

The move followed a sharp jump in oil prices, with Brent crude rising more than 5% to briefly hit $108 per barrel before easing to around $105. The surge came as Washington and Tehran offered conflicting accounts on whether peace talks are underway, adding uncertainty around the trajectory of the conflict.

The US has maintained that negotiations to end the war are continuing, while Iran has denied that any talks are taking place. At the same time, attacks across Israel, Iran, and Lebanon remain ongoing, reinforcing concerns that the situation could escalate further.

Bitcoin dropped nearly 4% on the day, falling as low as $68,500 before stabilizing near $68,900 at press time. The broader crypto market followed, with Ethereum declining around 5% to $2,050, Solana down 5% to $87, and XRP falling roughly 4% to $1.36.

Total crypto market capitalization fell about 3.3% to around $2.4 trillion, reflecting widespread selling across digital assets as macro risk intensified.

Traditional markets also weakened. The S&P 500 fell around 1%, while the Nasdaq dropped 1.45% by midday Thursday as investors reduced exposure to risk assets amid the lack of progress on de escalation efforts.

Safe haven flows showed mixed signals. While oil surged, precious metals moved lower, with gold down roughly 2.5% and silver falling close to 5%, extending their recent downtrend after earlier rallies this year.

Crypto-related equities also declined alongside digital assets. Robinhood, Coinbase, Circle, and Strategy each fell between 4% and 5%, reflecting continued sensitivity to crypto market volatility and broader risk sentiment.