Bitcoin Tumbles Below $70,000 Amid Soaring Energy Prices

The recent surge in energy prices has had a significant impact on the crypto market, with Bitcoin's value dropping below $70,000. The price of Brent crude oil rose to $114 per barrel, while European natural gas futures surged by about 25% to above $78 per MWh. The increase in energy prices is partly due to the war between Iran and Israel, which has disrupted key Gulf energy infrastructure.

The Federal Reserve's decision to pause interest rate cuts also contributed to the decline in Bitcoin's price. The US dollar strengthened as a result of the Fed's announcement, putting pressure on risk assets. Bitcoin fell by 1.6% since midnight UTC, while ether dropped by 1.7% to $2,160.

The crypto market has experienced a significant outflow of capital, with nearly $600 million in leveraged futures bets being liquidated in 24 hours. The overnight price drop caught bulls off guard, and industry-wide, futures open interest declined by 5.6%. Volatility in the market is expected to continue, with fear creeping back into the market.