Bitcoin Clings to $70,000 Amid Oil Spikes and Stock Plunge-What Happens Next is Anyone’s Guess

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Markets

What to know:

  • In a world where chaos reigns, Bitcoin somehow clings to the $70,000 level, whilst other risk assets spiral into the abyss of doom, all thanks to the Iran situation. A regular day in financial markets!
  • Oil prices surge like a hot air balloon on steroids-up 10% and nearing $100 per barrel. Meanwhile, President Trump shrugs off rising prices like a man who doesn’t know the meaning of “budget,” and Iran’s supreme leader is holding a “no surrender” sign.
  • Credit issues in the U.S. financial sector are causing more worry than a Monday morning without coffee.

Safe-haven asset? Who would have thought?

Despite the market’s dramatic rollercoaster ride, Bitcoin continues to defy the odds and hold its ground at just above $70,000. Other assets? Not so lucky. They’re tumbling faster than a lead balloon. At least Bitcoin’s been doing its best impersonation of a financial hero.

Stocks, of course, are suffering, with crude oil prices shooting up like a bottle rocket-10% higher and nearing $100 per barrel. What’s causing the panic? The Hormuz Strait, my dear friends, that vital shipping route for oil tankers. If it weren’t for the geopolitical mess, we might have had a calm, serene day on Wall Street. But no-Trump has other ideas. “Stopping Iran is my real concern,” he says. As for Iran’s new supreme leader, Mojtaba Khamenei? He says the Strait should stay shut. Is this diplomacy, or just a game of chicken? Your guess is as good as mine.

“It’s becoming clear to everyone that the Strait is far from under control and potentially impossible to control without severe concessions to Iran, boots on the ground, or huge military risks,” said Quinn Thompson, founder of Lekker Capital, presumably whilst sipping a very strong cup of coffee. “Things get dicey from here.” No kidding, Quinn. Things are as dicey as a casino on a Friday night.

By the time noon rolls around on the east coast, the Nasdaq is near session lows, down 1.6%, and the S&P 500 is off 1.2%. As they say in the business: “Don’t look now.”

Oh, and while Iran hogs the front pages, let’s not forget that private credit issues are still lurking in the background like an uninvited guest at a party. Morgan Stanley was the latest financial titan to clamp down on redemptions-this time at its $8 billion North Haven Private Income Fund. The result? Shares of Morgan Stanley are down 4%, dragging down the financial sector with it. You can almost hear the collective groan of traders everywhere.

Private equity is no better-KKR, Apollo Global, and Ares Management all down 3% to 4%. It’s enough to make a grown investor cry.

Meanwhile, gold is down 0.6%, and the 10-year U.S. Treasury yield has nudged higher by three basis points to 4.23%. Not exactly what you’d call a peaceful day in the markets.

Oil drives markets

According to James Butterfill, head of research at CoinShares, oil is now the big player in the asset pricing game. Forget the labour market-oil’s the new king. In a note, Butterfill argued that the recent U.S. payroll report, which missed expectations, would have normally sent markets into a frenzy, pricing in faster rate cuts from the Federal Reserve. But the reaction? Absolutely muted. Investors are too busy obsessing over rising energy costs linked to the Middle East conflict.

Despite a slight pullback on Thursday, Bitcoin is still holding up like a champ amidst rising geopolitical tensions. It seems that large investors are no longer just looking for exposure to Bitcoin’s price-they’re after the infrastructure behind it. As Dom Harz, co-founder of layer-2 blockchain BOB, puts it, institutions are increasingly eyeing Bitcoin-based financial applications that could let users spend, save, and earn using the network. So, it’s not just about the coin; it’s about the whole dang ecosystem.

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2026-03-12 18:55