▲ An oil tanker passing through the Persian Gulf

International oil prices have surged due to geopolitical tensions in the Middle East, stoking fears of stagflation and battering the cryptocurrency market, with market leader Bitcoin (BTC) plunging to the $67,000 range and triggering extreme fear across the market.

As of 7:10 a.m. KST on March 8, data from global cryptocurrency tracker CoinMarketCap showed that the total market capitalization of digital assets fell 0.97% from the previous day to $2.31 trillion. Bitcoin was trading at $67,423.20, down 1.33% over the past 24 hours, while Ethereum (ETH) slipped 0.69% to $1,970.00, failing to reclaim the $2,000 level. XRP stood at $1.35, Solana (SOL) at $83.25, and Dogecoin (DOGE) at $0.09003, with most major altcoins extending their declines. The Crypto Fear & Greed Index, a gauge of market sentiment, dropped to 18, signaling extreme fear.

The biggest flashpoint for global financial markets this week, including the crypto market, is the escalating conflict between the United States and Iran and its impact on international oil prices. As U.S. President Donald Trump pressures Iran to surrender unconditionally, Tehran has countered by threatening strikes on neighboring oil facilities and the closure of the Strait of Hormuz, effectively holding the global oil supply chain hostage. As a result, West Texas Intermediate crude has surged past $90 per barrel, marking a weekly jump of 35.63%, the largest since records began in 1983.

Experts warn that in a worst-case scenario, oil prices could soar to $150 per barrel, severely fueling inflation while eroding economic growth and bringing stagflation into reality. In an already highly subdued investment climate, surging energy prices are adding significant selling pressure across risk assets, including cryptocurrencies.

Market attention is now focused on the U.S. Consumer Price Index for February, due on the 11th, and the Personal Consumption Expenditures Price Index for January, scheduled for release on the 13th. Although the data predates the outbreak of war with Iran and may not fully reflect the recent spike in oil prices, any inflation shock exceeding the market forecast of a 0.2% increase could amplify fears already heightened by weakening consumer sentiment.

Morgan Stanley recently projected that despite deteriorating employment indicators, the Federal Reserve may opt to hold rates steady rather than cut them due to the inflationary risks posed by soaring oil prices. As long as expectations for monetary easing fade and oil prices remain elevated, the cryptocurrency market is unlikely to find an independent catalyst for a rebound in the near term. Whether Bitcoin can hold the $67,000 support level will be the key test this week, and investors are advised to refrain from aggressive buying and focus on strict risk management until greater clarity emerges on key inflation data and the military situation in the Middle East.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.

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