Oil Spooks Bitcoin Below $66K — $10K Target Crawls Out of the Woodwork

Bitcoin took a trip down memory lane on Thursday, dipping below $66,000 to hit week-to-date lows as oil-supply fears slammed markets at Wall Street's open. Nothing says "risk-on asset" like following crude around like a lost puppy.

The Strait of Hormuz drama has everyone on edge, and Bitcoin decided to tag along for the ride. US equities got hammered — the Nasdaq was down over 2% — while WTI crude spiked to $114 per barrel. Fun times. Actually, not fun times. Very not fun times.

Bloomberg Intelligence's senior commodity strategist Mike McGlone isn't mincing words: Bitcoin might be "reverting" back to $10,000. That's right, the same $10K where Bitcoin futures first started trading nearly a decade ago. Before the massive 2020-21 bull run, BTC was hanging out around those levels. McGlone reckons history might be rhyming — or at least, doing a rough impression. Nothing like a good ol' fashioned 85% drawdown to keep things interesting.

Meanwhile, the liquidation counter kept ticking. CoinGlass data showed over $400 million in crypto liquidations over 24 hours. Ouch. That's a lot of leveraged positions going up in smoke. Hope those degens had stop-losses.

The chaos came as markets digested President Trump's address to the nation, which apparently left a lot to be desired. The Kobeissi Letter called it the "most puzzling part of the Iran War yet" — basically, Iran's President said no enmity toward Americans, then Trump escalated things. Markets weren't thrilled. Nobody asked for this geopolitical chaos on a Thursday.

If oil stays elevated for two months, The Kobeissi Letter warned US inflation could hit 3.6% — the highest since September 2023. Prediction platform Kalshi showed declining odds of oil traffic returning to "normal" levels this year. So much for that soft landing narrative.

Gold managed a modest rebound, because of course it did. The golden boomer asset continues to do golden boomer asset things while the rest of us bleed.