Bitcoin drops 2.2% as Ukraine, Iran strikes send oil toward one-month high

Bitcoin (BTC) gave back early-week gains into Monday’s Wall Street open as doubts compounded over a Russia-Ukraine “energy ceasefire.”

Key points:

• Bitcoin reached $84,250 before falling 2.2% amid market nerves over oil supplies and the Russia-Ukraine “energy ceasefire.”
• Analysis saw too much “risk premium” priced in to oil markets in the face of improving shipping volumes.
• BTC options traders positioned “defensively” while keeping $90,000 and above on the table. 

Bitcoin pressured as Brent crude oil rises above $107

Data from TradingView showed BTC/USD reaching $84,254 on Bitstamp, its highest level since Wednesday, before dropping up to 2.2%. 

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The retreat came as Ukraine president Volodymyr Zelenskyy accused Russia of continuing to target energy infrastructure despite US president Donald Trump announcing a moratorium on such strikes. Elsewhere, Iran reported that an oil tanker had been hit and was ablaze in the Strait of Hormuz.

Oil prices reacted sharply, with WTI crude spiking past $94 per barrel and Brent crude reaching $107.25 — its highest since Sept. 16.

CFDs on Brent crude oil four-hour chart. Source: Cointelegraph/TradingView