The price of Bitcoin fell below $70,000 as oil prices rose more than 60% this year amid rising tensions in the Strait of Hormuz, adding more pressure to commodity risks.
Summary
- Bitcoin is trading near $69,984 after falling 3.8% in the last 24 hours, although it remains up 7.8% during the week.
- Oil prices have risen more than 60% this year as disputes around the Strait of Hormuz raise concerns about supply disruptions and inflation.
- The increase in short-term volatility suggests that the Bitcoin market is entering a repositioning phase that could lead to a major move in either direction.
Bitcoin (BTC) was trading at $69,984 at press time, down 3.8% in the past 24 hours as risk sentiment across financial markets eased. The pullback comes after a volatile week.
Despite the recent decline, Bitcoin is still up about 7.8% for the week and has fluctuated between $63,176 and $73,669 over the past seven days. However, the cryptocurrency is still trading about 44% below the October 2025 high of $126,080.
The most recent price swings have increased activity in the derivatives market. Open interest increased by 1.24% to $44.39 billion, while trading volume increased by 57.9% to $67.26 billion, according to CoinGlass data.
The increase indicates that as uncertainty in global markets increases, traders are actively repositioning their portfolios.
The increase in oil raises the pressure
A report published on March 9 by CryptoQuant analysts points to the rise of international disputes around the Strait of Hormuz as a potential storm for Bitcoin and other risky assets.
Due to growing concerns about supply disruptions, oil prices have increased by more than 60 percent since the beginning of the year. The Strait of Hormuz is an important part of the world’s energy markets, accounting for approximately 20% of daily oil exports and 35% of oil transported by sea.
If this limited transmission line is disrupted, energy costs can rise dramatically. An increase in oil prices, according to analysts, could fuel inflation and put pressure on financial markets, which are already vulnerable to commodity disruptions.
This type of large area has historically been difficult for Bitcoin. Sharp increases in oil prices often accompany the later stages of the market cycle, when risk appetite begins to wane. Exposure to speculative assets such as cryptocurrencies may be discouraged by the country’s growing tensions.
Volatility shows the repositioning of the market
The structure of Bitcoin has changed significantly in recent months, according to a separate analysis using data from the Binance BTC Volatility & Range Engine. There has been a lot of temporary volatility.
After rising above 1.5 in February before falling again, the 7-day moving average was near 0.72. These types of sudden increases often occur during periods of market stress and are often linked to significant portfolio adjustments or derivative closings.
Long-term volatility, however, remains stable. The 30-day volatility remains at 0.50, while the 90-day average is near 0.57. This suggests that although short-term price volatility has increased, the overall market structure has not yet entered a phase of extreme volatility.
The Average True Range indicator is currently near 0.054, indicating an average trading range compared to previous periods of intense market activity.
Taken together, the data suggests that Bitcoin is going through a repositioning phase after its previous rally. Buyers and sellers are still competing for control in the short term, which explains the recent rise in volatility.
At the same time, long-term volatility remains contained, indicating that the market has not yet entered a full panic or euphoria phase.
