Bitcoin (BTC) is back trading below $70,000 U.S. as crude oil prices surge and stock markets around the world turn lower.
In early morning trading on March 19, Bitcoin was at $69,600 U.S., having dropped about 5% over the last 24 hours.
The pullback in BTC coincides with a sharp spike in energy prices, with Brent crude oil rising as high as $119 U.S. after Iran attacked energy infrastructure across the Middle East.
European natural gas futures are up as much as 25%, sending investors fleeing from risk assets such as cryptocurrencies and into safe havens.
Also weighing on Bitcoin’s price are dashed hopes for interest rate cuts after the U.S. Federal Reserve said that it sees only one 25-basis point reduction this year, likely not until December.
Lower interest rates tend to benefit riskier assets such as crypto and stocks.
The U.S. Federal Reserve left its benchmark overnight rate unchanged in the 3.50%–3.75% range and warned about growing risks posed by rising energy prices and inflation.
Other leading cryptocurrencies are also selling off on the negative news, with Ethereum (ETH) down about 6% and trading at $2,155.50 U.S.
Bitcoin’s price had been as high as $75,000 U.S. earlier in the week, raising hopes among investors for a breakout rally.
However, market data shows that nearly $600 million U.S. in leveraged crypto future bets have been liquidated in the last 24 hours as the price of BTC once again retreats.
