BTC Falls Below $66K Amid Crude Oil Concerns Fueling 'Untenable' Inflation Pressure in US
Bitcoin participated in a broader selloff of risky assets as concerns over oil availability triggered significant inflation alerts in the United States, establishing $70,000 as fresh resistance for BTC pricing.
Bitcoin (BTC) approached the $66,000 level during Friday's opening session on Wall Street as expert analysis characterized current US inflation trajectories as "objectively unsustainable."
Key points:
- Bitcoin drops further on oil-supply woes as Iran closes the Strait of Hormuz.
- BTC price performance is set to seal its sixth straight month of losses at the March close.
- Traders eye the lows with $70,000 back as resistance.
Crude oil constraints trigger US Treasury market turmoil
Information from TradingView showed continued BTC price declines, which came close to 4% during the trading session and posed a threat of converting March into Bitcoin's sixth consecutive negative month.
Macroeconomic news stories fueled deterioration throughout risk-oriented assets. American equities launched downward following Iran's closure of the Strait of Hormuz, intensifying anxieties regarding worldwide oil availability.
As the US-Iran conflict appeared poised to continue into April, markets displayed signs of strain across all sectors — US bonds included.
"The US bond market is in major trouble today," trading resource The Kobeissi Letter warned in a post on X.
Kobeissi observed that the 10-year Treasury note had reached its highest point since the conflict's inception, presenting a substantial challenge for the Federal Reserve in its efforts to control inflation while labor-market circumstances deteriorate.
"In less than one month, markets have gone from discussing rate cuts to rate hikes, with the base case showing a Fed PAUSE for the next 18 months," it continued.
"Keep in mind, the Fed was cutting interest rates because the labor market was weak, and it remains weak. However, inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable."
As Cointelegraph reported, oil prices have a pronounced impact on US inflation trends, while markets have also raised expectations of recession hitting in 2026.
"Inflation expectations have become so bad that the market is trading like an emergency Fed rate hike is imminent," Kobeissi founder Adam Kobeissi added.
BTC price encounters resistance barrier at $70,000 level
Within the Bitcoin trading community, sentiment remained equally cautious as BTC/USD hovered around its weakest positions in three weeks.
Examining four-hour timeframe patterns, Telegram trading resource Technical Crypto Analyst forecasted a "likely" move back toward $64,000 as the next destination.
Information from CoinGlass highlighted the significant implications for pricing heading into the March monthly close, with BTC/USD preparing for its first streak of six consecutive months of losses since the conclusion of its 2018 bear market.
"Indeed seeing the market derisking into the weekend as expected and as we've been seeing several weeks now," trader Daan Crypto Trades continued.
"Eyes on that $65.6K low from last week Monday. Main area to watch for me will be the range low. Seeing there's still quite a bit of liquidity around that area."
