Bitcoin (BTC) is down 2% and trading at $77,700 on April 23 as crude oil prices rise above $100 a barrel and investors sell growth stocks.
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BTC had been as high as $80,000 a day earlier and on the cusp of a meaningful breakout. However, Bitcoin is once again moving lower as geopolitical uncertainty weighs on markets and the situation in the Middle East becomes increasingly unclear.
Along with Bitcoin, other leading cryptocurrencies such as Ethereum (ETH) and Dogecoin (DOGE) are also in the red on the day as investors grow more cautious. Despite U.S. President Donald Trump saying there’s a permanent ceasefire in place with Iran, skirmishes over the Strait of Hormuz continue.
Energy Prices Spike
In recent days, Iran has attacked multiple ships traveling through the Strait of Hormuz, a waterway where 20% of the world’s crude oil travels. At the same time, the U.S. claims to have captured an Iranian ship in the Strait. The situation has energy prices spiking, with Brent crude oil, the international standard, at $105 per barrel.
The situation led U.S. stocks to end the trading day in the red on April 23 as investors moved out of growth stocks and headed for the sidelines. This appears to have dragged on crypto prices after digital assets enjoyed a strong rally in recent days on hopes for lasting peace in the Middle East.
BTC’s Three-Month Performance
The chart below shows that Bitcoin has struggled in recent months and declined 12.54% in the last 12 weeks as the selloff in cryptocurrencies that began last October has largely continued.
