Oil Price Surge Sends Bitcoin Tumbling into Key Resistance Zone
Bitcoin maintained its stability near $78K as global markets reacted to escalating tensions between the US and Iran. The renewed conflict pushed oil prices higher, while stocks and gold declined.
The WTI crude futures rose nearly 2% to $85.10 a barrel, while Brent crude gained 1.9% to $92.39, according to TradingView data. Meanwhile, gold slipped 0.8% to $4,418 per ounce, Nasdaq futures fell 0.5%, and Asian equity markets weakened.
Bitcoin's relative strength has been supported by robust inflows into U.S. spot Bitcoin ETFs and expectations surrounding Federal Reserve policy. However, those expectations shifted after Fed Chair Kevin Warsh delivered hawkish remarks at the Jackson Hole Symposium on Friday. Warsh said inflation remains insufficiently controlled and argued that financial conditions are not restrictive enough.
Crypto analysts remain cautious despite bitcoin's August rally. MUFG FX strategist Lloyd Chan noted that markets now see a 58% probability of a September interest rate hike and are pricing approximately 1.5 increases by the end of 2026.