Bitcoin (BTC) and other cryptocurrencies are sinking on July 8 as prices for crude oil jump 5% higher amid renewed Middle East fighting.
In early trading, Bitcoin was down 2% and trading at $62,200 U.S. Other digital assets such as Ethereum (ETH), Solana (SOL), and XRP (XRP) were down as much as 5%.
The declines come as stocks around the world selloff sharply after the U.S. resumed military strikes on Iran and a ceasefire between the two countries appears to be at an end.
Brent crude oil, the international standard, is up 5% and trading at $77.59 U.S. a barrel.
Bitcoin and other digital assets are getting caught up in the global selloff and reversing the gains they had achieved to start the trading week.
The price of BTC had risen above $64,000 U.S. as cryptocurrencies appeared to strengthen. But now, risk assets are again falling as investors assess geopolitical risks.
Rising oil prices threaten to spark an increase in inflation, which could prompt the U.S. Federal Reserve to raise interest rates later this year.
Higher interest rates are a negative for risk assets such as stocks and crypto and tend to put downward pressure on prices.
Bitcoin has largely been rangebound since the end of June, trading between $60,000 U.S. and $65,000 U.S.
