The turbulent Friday, as the US-Iran conflict entered its fifth week, caused declines in Bitcoin and cryptocurrency markets.
Bitcoin (BTC) fell to levels as low as $68,500 on Friday morning, registering a 2% decrease in the last 24 hours.
It is stated that, in addition to the US-Iran war, the ongoing Ukraine-Russia war also played a role in this decline.
Crypto analyst Omkar Godbole stated that the ongoing Russia-Ukraine war could also affect Bitcoin.
The analyst noted that Ukraine recently attacked ports and refineries in Russia’s Leningrad region, arguing that this could negatively impact the energy market and, consequently, Bitcoin.
According to market observers, the damage caused by Ukraine is significant. Accordingly, approximately 40% of Russia’s oil export capacity has been disabled.
At this point, the analyst stated that Ukraine’s blocking of Russian oil flow added new uncertainty to already tense energy markets. This uncertainty in the energy market and rising oil prices complicated the inflation outlook and increased pressure on risky assets, including Bitcoin, leading to a decline.
The analyst said, “Previously, the U.S. partially eased sanctions on Russian crude oil to compensate for the oil supply shortfall caused by the war with Iran, but disruptions in Russia’s oil supply could weaken the impact of this U.S. move.”
In conclusion, according to the analyst, if there are further disruptions to oil supply, including the damage Ukraine has inflicted on oil supplies, international oil prices could rise and inflation could increase. This would delay interest rate cuts by central banks, particularly the US Federal Reserve. This would increase downward pressure on Bitcoin and raise the possibility of a test of $60,000.
*This is not investment advice.