Bitcoin rose to $71.7,000 on Tuesday, March 10, after the International Energy Agency (IEA) planned to extract a record amount of oil from its reserves.
The aim of the move was to stabilize energy markets amid the ongoing crisis in the Strait of Hormuz.
The update saw oil prices drop sharply by 21%, from $100 to $85 per barrel. Also the Wall Street Journal reported He said President Donald Trump’s advisers are pushing for an end to the Iran war to avoid political backlash.
Collectively, these bullish updates cause oil prices to fall, while Bitcoin (BTC) It rose to $71.7 thousand, underlining the renewed risk appetite regarding the stability of energy markets.
Is it too early for Bitcoin FOMO?
Actually, Santiment noted He said that as BTC surges above $70,000, ‘FOMO’ is also on the rise as investors become greedy amid bullish updates.
But past FOMO spikes have also been marked by short-term pullbacks, especially when triggered by long squeezes.
For example, a similar surge of FOMO around March 4 saw BTC jump to $73,000 before a sharp pullback to $65,000.
If past trends are repeated, especially if oil prices rise, BTC may drop to $65,000.
Yet despite ongoing tensions in the Middle East, there was considerable resilience. Bitfinex analysts noted that panic selling and daily realized losses dropped sharply from $3 billion to $370 million.
Analysts added If ETF inflows improve this week, BTC could extend its recovery. Otherwise, the price range between 65 thousand dollars and 72 thousand dollars may narrow further. At press time, BTC was trading at $69.4K, slightly below Tuesday’s peak.
Option analysis shows that…
Still, the options market painted a broader picture of optimism, perhaps driven by plans to release oil reserves.
Accordingly Jeff ParkThe top five IBIT Options from BlackRock, an advisor at asset manager Bitwise, include calls (bullish bets) in terms of volume and notional value.
This meant that institutions were betting on a prolonged BTC recovery in the near term. But Deribit data It showed that Options traders on the platform had priced in only a 25% chance of BTC retesting $75,000 by the end of March.
The difference between corporate bullish bets and the low probability of making back $75,000 may be resolved by developments in the Middle East and energy markets.
Analysts expect Xi Jinping-Donald Trump meetingScheduled for the end of March, it may provide more clues about the situation in the Middle East.
But before the latest Xi-Trump summit, there is a preparatory meeting between senior officials of China and the US scheduled to be held in Paris over the weekend (March 14-15).
For analysts Garret RiseA negative outcome from the weekend meeting will complicate the situation in the Strait of Hormuz and affect oil prices and, accordingly, BTC.
Final Summary
- Bitcoin FOMO spiked at the beginning of the week when the price surpassed $70,000 at a time when the IEA was planning to release oil reserves to stabilize energy markets.
- Despite the strong demand for calls (bullish bets), investors were pricing in only a 25% chance of BTC reclaiming $75,000 in March.
