Oil Crashes 11%, Bitcoin Price Retakes $65K: What Now?

The single most important chart for crypto traders this week is not Bitcoin. It is crude oil.

WTI gapped straight down at Sunday's open, tearing a hole in the chart that took it from roughly $91.7 on Friday's close to $85.3 within minutes. It has since drifted lower to $84.04. Measured from last week's high near $94.3, that is a decline of almost 11% in three sessions.

The trigger was diplomatic, not economic. Washington quietly halted its bombing campaign against Iran late on Friday after 13 consecutive nights of strikes, Tehran responded by suspending its own retaliation, and talks resumed in Oman over the Strait of Hormuz. Brent, which had touched $102 last week, dropped more than 7% in the first minutes of Monday trading.

Crypto noticed immediately. $Bitcoin pushed back through $65,000, Ether ran to a two-month high near $2,000, and the total market gained around 1.7%. Here is why the two are connected, and why the connection is more fragile than it looks.

What Actually Happened Over the Weekend?

The pause was never formally announced, which is part of what makes it unstable.

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