BlockBeats news, on March 20, according to Decrypt, Bitcoin briefly rebounded above $71,000 before retreating to approximately $70,547. This rally occurred following U.S. Treasury Secretary Bentsen's announcement of measures to address the surge in oil prices.
Bessent stated that the U.S. is considering exempting certain sanctions on Iranian tankers already at sea and further discussing the possibility of releasing strategic petroleum reserves. The day before, Brent crude prices surged to $119 per barrel following attacks on energy facilities in the Persian Gulf, causing Bitcoin to drop below $70,000 and triggering over $500 million in crypto market liquidations.
Nevertheless, market participants remain vigilant. Analysts warn that if the Strait of Hormuz, a critical chokepoint for global energy supplies, remains blocked for an extended period, oil prices could surge further to $200 per barrel. Carlos Guzman, an analyst at GSR Research, stated that Bitcoin’s price movement is a secondary effect of rising energy prices: high energy costs may prompt the Federal Reserve to maintain elevated interest rates for a prolonged period, and high rates are “generally unfavorable for the crypto market,” as low-interest environments typically encourage investors to allocate capital toward risk assets.