{"id":8069,"date":"2026-04-03T07:03:42","date_gmt":"2026-04-03T07:03:42","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=8069"},"modified":"2026-04-03T07:03:42","modified_gmt":"2026-04-03T07:03:42","slug":"bitcoin-faces-10k-downside-warning-as-oil-surge-rattles-markets","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=8069","title":{"rendered":"Bitcoin Faces $10K Downside Warning as Oil Surge Rattles Markets"},"content":{"rendered":"

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  • Bitcoin dropped to a weekly low near US$66,000, down 1.76% on April 2, as the US-Iran conflict disrupted Strait of Hormuz shipping and sent crude oil above US$100 per barrel.<\/span><\/li>\n
  • Bloomberg Intelligence Senior Commodity Strategist Mike McGlone warned Bitcoin may be reverting toward US$10,000, citing its pre-2020 bull run price level before the \u201cbiggest money pump in history.\u201d<\/span><\/li>\n
  • Crypto liquidations exceeded US$400 million in 24 hours, with BTC\u2019s 0.75 correlation to the S&P 500 leaving it exposed to equity-linked selling as oil-driven inflation fears mounted.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    Bitcoin (BTC) fell to around US$66,000 (AU$95,700) on April 2 after U.S. military action disrupted the Strait of Hormuz, sending oil prices above US$100 (AU$145) per barrel and triggering a broad risk-off move across markets.<\/p>\n

    BTC traded at US$66,915 (AU$97,000), down 1.76% on the day. Ether dropped 4.5% and Solana fell 5.1%. Bitcoin\u2019s correlation with the S&P 500 rose to 0.75, showing it was moving in line with equities rather than acting as a defensive asset.<\/p>\n

    Related: Bitcoin ETFs Snap Outflow Streak with $1.3B Inflows in March<\/strong><\/p>\n

    Oil Shock and the Hormuz Choke Point<\/h2>\n

    The Strait of Hormuz, through which about 20% of global oil and LNG supplies pass, saw ship traffic decline by 90 to 95% after the conflict began.\u00a0<\/p>\n

    Crude prices ranged between US$103 and US$114 (AU$147 to AU$165) per barrel across benchmarks and intraday sessions, while US retail gasoline crossed US$4 per gallon for the first time since Russia\u2019s 2022 invasion of Ukraine.<\/p>\n

    President Trump\u2019s April 2 address offered no commitment to de-escalate, with the president stating the conflict could last \u201canother two to three weeks.\u201d\u00a0<\/p>\n

    Moreover, the Kobeissi Letter projected that sustained elevated oil would push US inflation to 3.6%, the highest since September 2023. Adam Kobeissi stated:<\/p>\n

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    Just as oil and bond markets had calmed down, President Trump has sent oil prices soaring again. US oil prices have now risen over +$1\/hour since President Trump\u2019s speech at 9 PM ET. It began with Iran\u2019s President stating they have \u201cno enmity\u201d towards Americans and ended with President Trump escalating the Iran War, the exact opposite of what we have seen over the last 2 weeks from both sides. It simply does not add up.<\/em><\/p>\n<\/div>\n

    \n Adam Kobeissi, founder of The Kobeissi Letter. <\/div>\n<\/div>\n

    Bloomberg\u2019s $10,000 Target<\/h2>\n

    Bloomberg Intelligence Senior Commodity Strategist Mike McGlone flagged Bitcoin\u2019s pre-bull-run baseline as the reference point for his warning.\u00a0<\/p>\n

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    Before the biggest money pump in history in 2020\u201321, Bitcoin hovered around $10,000, and it may be reverting,<\/em><\/p>\n<\/div>\n

    \n Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist <\/div>\n<\/div>\n
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    The Bursting Crypto Bubble and Potential $10,000 Bitcoin in 2026 \u2013 <\/p>\n

    Before the biggest money pump in history in 2020-21, Bitcoin hovered around $10,000, and it may be reverting. Roughly $10,000 is also the first-born crypto’s most traded price since 2017, when futures were\u2026 pic.twitter.com\/bchbAOcYxi<\/a><\/p>\n

    \u2014 Mike McGlone (@mikemcglone11) April 2, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

    BlackRock CEO Larry Fink flagged a further risk, noting oil could reach US$150 (AU$230) per barrel and trigger a global recession if Iran\u2019s threat to the Strait persists once the conflict ends, according to Fortune.\u00a0<\/p>\n

    Going back to crypto, well, liquidations exceeded US$400 million (AU$578 million) in 24 hours, with the Nasdaq Composite falling more than 2% and the S&P 500 also declining.\u00a0<\/p>\n

    For retail crypto investors, BTC\u2019s high equity correlation means macro shocks transmit directly into digital asset prices, and a prolonged oil shock could make McGlone\u2019s US$10,000 floor the defining risk benchmark for 2026.<\/p>\n

    Read more: Bitcoin Treasury Sell-Off Sparks Fears of Crypto Contagion<\/strong><\/p>\n<\/p><\/div>\n