Bitcoin Slides to $62,037 as Iran Conflict Sparks Fresh Energy Fears

Bitcoin slumped to around $62,037 on Monday as renewed military conflict between the U.S. and Iran escalated, sparking fears of another energy crisis. Market data shows the top cryptocurrency dropped from a 24-hour high of $64,385 late Sunday to $62,037 by 10:15 a.m. EST. After briefly attempting to reclaim the $63,000 resistance level, another sell-off pushed it back to $62,200, leaving it down nearly 3% on the day.

The decline reduced Bitcoin’s market capitalization from $1.28 trillion to approximately $1.25 trillion, while the total crypto market cap fell to $2.24 trillion. The sell-off triggered over $322 million in liquidations across the market, with long positions accounting for $267 million of the total; short liquidations reached $12 million.

The geopolitical backdrop involved a sharp escalation in U.S.-Iran hostilities. Following earlier strikes, the U.S. military struck more than 100 targets in Iran, which it said were in response to Iranian attacks on shipping vessels in the Strait of Hormuz. Iran launched retaliatory strikes against U.S. bases in five Gulf countries. The exchanges came after President Trump declared the ceasefire over and accused Tehran of violating a memorandum of understanding.

Oil prices jumped 4.5% in response, with Brent crude surpassing $80 per barrel. Analysts said market concern is expanding beyond crude prices to disruptions in global refining capacity and fuel supply chains. Ongoing conflicts have affected refinery operations in the Middle East and key shipping routes. “Even if crude oil prices stabilize, gasoline and diesel prices could remain elevated due to limited refined fuel availability,” a Bitunix analyst noted. “This creates a risk that energy inflation may prove more persistent than markets currently anticipate.”

For global markets, including crypto, the central question is whether global capital costs will continue to rise. With AI investment absorbing significant funding, energy supply chains uncertain, and Federal Reserve policy unsettled, risk assets remain driven by the interplay of interest rates, liquidity, and corporate financing costs. “For bitcoin, reclaiming and holding above $64,000 could improve short-term momentum,” the analyst added. “However, continued pressure from higher capital costs may keep BTC trapped within a broader consolidation range.”

Source: https://news.bitcoin.com/bitcoin-slides-to-62037-as-iran-conflict-sparks-fresh-energy-fears/