Oil Price Surge Sends Bitcoin Below $78K as Middle East Tensions Escalate
Bitcoin price slipped below $78,000 for the first time since September 3 as risk assets fell due to renewed Middle East tensions. The US crude oil price hit a three-month high near $95 per barrel following news of Houthi strikes on Saudi Arabian cities and oil infrastructure.
The S&P 500 and Nasdaq Composite Index were down by 0.5% and 0.4%, respectively, at the time of writing. Oil prices showed a more pronounced reaction to the events, with WTI crude surging toward $95 per barrel, its highest since June 8.
US president Donald Trump downplayed the oil spike in a Truth Social post on Monday, pledging lower prices in the future. However, analysis shows that BTC price is copying a failed May breakout, and that the current zone of $78,300 may be key support for Bitcoin.
If the current zone fails to hold as support, BTC/USD would seal another lower high in a series stretching back to October 2025, keeping its 2026 bear market firmly in place. Rekt Capital noted that 'Ultimately, a Weekly Close below $78,300 followed by a bearish retest just like in early May would likely confirm a breakdown.'