Changes in the macroeconomic landscape are profoundly impacting the cryptocurrency market. As geopolitical tensions drive up oil prices and bolster the dominance of the US Dollar, risk assets are facing widespread selling pressure. This article provides an in-depth review of the core drivers behind recent market volatility, analyzing the linkage between macro indicators and digital assets. In the face of current market panic and sharp fluctuations, we invite readers to analyze the underlying logic and potential risks behind this correction through our perspective.

Oil Prices Surge, Dollar Strengthens, Risk Assets Under Pressure! Bitcoin Plunges Below $66,000 with $342 Million in Liquidations

Bitcoin (BTC), influenced by the surge in oil prices and a strengthening US Dollar triggered by Middle East tensions, recently broke below the $66,000 support level. Within a 24-hour window, total market liquidations reached $342 million, with long positions suffering the heaviest losses. Currently, the Crypto Fear & Greed Index has plummeted to a reading of 8, indicating that investor sentiment is in a state of "Extreme Fear," as risk assets across the board undergo significant corrections under macroeconomic pressure.

Bitcoin Takes a High-Altitude Dive, Ethereum Weakens in Tandem

Bitcoin initiated its downward trajectory from a high of $68,200 on Sunday evening at 18:00. During the session, it briefly dipped below the $65,700 mark before seeing a minor intraday bounce. As of the Monday morning session, BTC is trading at approximately $66,323, representing a 24-hour decline of about 2.8%. Notably, Bitcoin fell nearly 2% within a mere 15-minute window, a volatility spike that occurred almost simultaneously with a surge in international crude oil prices.

Ethereum (ETH) has shown similar weakness, retracing from $2,134 last night to test support near $2,055. It has since stabilized slightly, trading at $2,073 in the early session, down roughly 2.9% over 24 hours. Looking back at recent performance, Bitcoin had previously climbed to $73,770 last week amid escalating tensions between the US and Iran, but it has since fallen for four consecutive trading days, erasing all previous gains.

$342 Million Liquidated Globally, Fear Index Hits Extreme Lows

In the past 24 hours, the cryptocurrency futures market has witnessed liquidations totaling $342 million, with the vast majority consisting of long positions.

•   Market Sentiment: The Crypto Fear & Greed Index is currently holding at 8, firmly within the "Extreme Fear" zone.
•   Historical Comparison: This index has remained in a state of fear for several consecutive weeks. Since mid-February, the index has consistently stayed below 15. Historical data suggests that such readings often correspond with a medium-term bottom for the market; however, this does not necessarily guarantee an immediate short-term rebound.

Surging Oil Prices Bolster the Dollar, Risk Assets Face Collective Pressure

The US Dollar Index (DXY) rose to 99.5 during the Monday Asian session, a daily gain of 0.6%, marking its highest level since January 20. Oppressed by the strong dollar, non-US currencies have generally weakened:

The core factor driving the dollar's strength is oil. As tensions between the US and Iran continue to escalate, Iraq has warned that approximately 3 million barrels per day of production capacity in the Strait of Hormuz faces disruption risks. WTI Crude Oil futures surged to $113.7 per barrel, the highest level since the onset of the Russia-Ukraine conflict in April 2022. Rising oil prices have driven up inflation expectations, causing safe-haven capital to flow into the US Dollar, thereby compressing the valuation space for risk assets, including Bitcoin.

Trump States: Oil Prices Will "Come Down Very Soon"

According to ABC News, Donald Trump told reporters on Saturday: "We expected oil prices to go up, and they did. But they will come down, and they will come down very soon."

At the same time, Trump denied the necessity of tapping into the Strategic Petroleum Reserve (SPR) at this stage, claiming: "We have massive amounts of oil; the oil reserves in this country are incredible. Things will get back to normal very quickly." However, the market's reaction to these comments was muted, as the dollar remained strong and risk assets continued to face pressure.

Asian Equity Markets Slump at the Open

Affected by the deteriorating macroeconomic environment, Asian stock markets showed a broad downward trend at the Monday opening:

•   Nikkei 225 (Japan): Opened down 1,031.72 points (-1.85%) at 54,589.12.
•   KOSPI (South Korea): Opened with a massive drop of 368.07 points (-6.59%) at 5,216.8.

The single-day drop of over 6% in the KOSPI index is extremely rare, reflecting that the shock of surging oil prices on export-oriented economies has been directly transmitted to capital markets.

Market Outlook and Technical Perspective

The crypto market is currently in an "information vacuum," lacking clear positive catalysts, while the fear index has remained at extreme lows for an extended period.

Global investors typically manage their positions using USD-denominated pairs. For those moving fiat into the ecosystem, SWIFT and SEPA transfers remain the primary channels for international and European capital, though current volatility suggests caution. It is also important to note that for users located in the United States, regulations require the use of Binance.US rather than the global Binance platform. Furthermore, investors should be aware that cryptocurrency gains may be subject to capital gains tax depending on their local jurisdiction.

1. Downside Support: If oil prices further break above $110 and the DXY stabilizes above 100, Bitcoin may test the $62,000 to $64,000 range.
2. Upside Resistance: If signals of cooling tensions between the US and Iran emerge and oil prices retreat, a weakening dollar would release room for a rebound in risk assets. BTC would then likely retest the $68,000 to $70,000 resistance zone.

In the short term, the extreme reading of the fear index—remaining below 10—warrants investor vigilance. Historical experience shows that after more than three consecutive weeks of extreme fear, the market typically experiences a technical rebound within 2 to 4 weeks. However, the specific strength of such a rebound will depend on the cooperation of the broader macroeconomic environment.

Related Reading

• Bitcoin Critical Turn: Indicators & Institutional Accumulation
• Bitcoin 2026 Market Analysis: Halving Cycle & Macro Variables
• 2026 Ripple Rich List Shows XRP Wallet Concentration

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⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.