Bitcoin Erases Weekend Gains, Drops to $74,000 as US-Iran Tensions Escalate

Bitcoin erased its weekend gains and fell to the $74,000 level as military tensions between the US and Iran intensified.

As of April 20, according to CoinMarketCap, Bitcoin traded at $74,478.10, down 1.39% from a day earlier. It had earlier climbed to as high as $78,300 on Coinbase on April 18, the highest since early February. It then reversed course and fell back into the $75,000 to $76,000 range on April 19.

The decline accelerated after Iran said it could block key oil shipping routes through the Strait of Hormuz. Tensions worsened after the US military announced on April 20 that it had seized an Iranian cargo vessel. Bitcoin briefly fell below $74,000.

Iran called the move a violation of the ceasefire agreement and threatened retaliation. It also reportedly declined to attend additional talks scheduled in Islamabad, Pakistan. A two-week ceasefire between the two countries is also due to end this week, adding to uncertainty.

Global financial markets were also hit. US stock-index futures all fell, with S&P 500 futures down 0.8%, Nasdaq 100 futures off 0.6% and Dow futures lower by about 0.9%.

Oil prices, by contrast, jumped. Brent crude futures rose more than 4.5% to above $95 a barrel, while West Texas Intermediate gained 5% to near $88, reflecting geopolitical risk.

Meanwhile, the Crypto Fear & Greed Index, a gauge of market sentiment, stood at 29, remaining in the "Fear" zone. That was the highest level since late January, though investor sentiment remained subdued.