Bitcoin Price Drops Below $80K Support After US-Iran ‘Love Tap’ Pushes Brent Crude Over $100

• Bitcoin’s price fell below the key $80,000 level while Ethereum dropped under $2,300 following renewed U.S.-Iran military tensions.
• Spot Bitcoin ETFs recorded $268.5 million in net outflows on Thursday, ending a five-day inflow streak.
• Brent crude oil climbed back above $100 per barrel while the U.S. dollar strengthened amid the geopolitical uncertainty.

The cryptocurrency market fell in early-morning trade on Friday, with Bitcoin (BTC) and Ethereum (ETH) losing key support levels, after the U.S. and Iran exchanged military strikes in the Strait of Hormuz and Brent crude oil prices shot back up over $100 a barrel. 

Bitcoin’s price fell 1.3% in the last 24 hours to $79,800, losing its key support levels of $80,000. Ethereum’s price dropped 1.9%% in the last 24 hours to under $2,300.  

The selloff followed reports of the U.S. and Iran exchanging fire in the Strait of Hormuz, one of the world’s most critical oil shipping routes. Iran launched attacks targeting U.S. warships in the region, according to U.S. officials, prompting retaliatory American strikes on Iranian military positions. The escalation cast fresh doubt over ongoing peace negotiations between the two countries.

Bitcoin, Ethereum Lose Key Technical Levels

The overall cryptocurrency market was down 1% on the day, keeping above $2.7 trillion. CoinGlass data showed nearly $300 million in crypto bets liquidated over the past 24 hours, with nearly $240 million coming from long positions that were forced to unwind. 

Bitcoin’s drop below $80,000 marked another setback for the market after the asset briefly climbed above $82,000 earlier this week for the first time in three months. Bitcoin spot ETFs broke their five-day inflow streak, recording $268.5 million in outflows on Thursday, according to Farside Investors. Fidelity Wise Origin Bitcoin Fund (FBTC) led redemptions with $129 million exiting the ETF, followed by BlackRock’s iShares Bitcoin Trust (IBIT), which saw $98 million in outflows. 

As per K33 Research, Bitcoin’s 30-day average funding rates have now been negative for 67 consecutive days, the longest stretch in the last decade. Retail sentiment around BTC on Stocktwits trended in ‘bullish’ territory over the past day, accompanied by ‘high’ levels of chatter. 

Ethereum also continued to underperform amid broader weakness across altcoins. Meanwhile, retail sentiment around ETH on Stocktwits trended in ‘neutral’ territory over the past day, alongside ‘normal’ message volume levels. 

Why Is Crypto Falling?

Crude oil prices had trimmed gains earlier this week on hopes of a peace deal between the U.S. and Iran. However, after what President Donald Trump described as a "love tap," oil prices surged again. He told reporters that the ceasefire between the two countries is still in effect and that negotiations continue, but that Iran “better sign the agreement fast.”

Brent crude oil prices were trading around $100 per barrel after touching an intraday high of nearly $103. West Texas Intermediate crude oil was trading around $95 per barrel after rising as high as $98.

The United States Oil Fund (USO) edged 0.9% lower in pre-market trade. Retail sentiment around the ETF on Stocktwits rose to ‘bullish’ from ‘neutral’ over the past day, and chatter increased to ‘normal’ from ‘low’ levels.

Safe-haven gold gained 0.6% to around $4,700 per ounce. The SPDR Gold Shares ETF (GLD) edged 0.17% higher in pre-market trade, but retail sentiment fell to ‘extremely bearish’ from ‘bearish’ territory over the past day. Chatter stayed at ‘high’ levels. 

Read also: Tom Lee Says BMNR May Pull Back On Ethereum Buys – ‘There’s Other Things To Be Doing In Crypto Right Now’

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