[DigitalToday reporter Yoonseo Lee] With U.S. stocks plunging amid oil supply instability, bitcoin (BTC) also posted a weekly low. As market weakness persists, analysts also appear to be putting more weight on the possibility of further declines in bitcoin.

TradingView data cited by blockchain outlet Cointelegraph on April 2 (local time) showed BTC/USD at one point fell below $66,000, dropping to its lowest level for the week. U.S. stocks were also weak at the same time, and the Nasdaq Composite index fell more than 2 percent.

Mike McGlone (마이크 맥글론), senior commodity strategist at Bloomberg Intelligence, forecast that bitcoin could retest $10,000 over the long term. He judged it could return to that level because bitcoin traded around $10,000 before the 2020 to 2021 liquidity expansion phase. He also pointed out that $10,000 was the price range at which the bitcoin futures market first began trading about 10 years ago.

Forced liquidations also increased in derivatives markets. CoinGlass said crypto liquidations over 24 hours exceeded $400 million. As leveraged positions were unwound rapidly, this is interpreted as a typical risk-off market that increases volatility.

Markets, meanwhile, reacted to risks to crude supply passing through the Strait of Hormuz. West Texas Intermediate (WTI) jumped to $114 a barrel as U.S. stocks opened, and trading analysis firm The Kobeissi Letter said that if the current rise in oil prices lasts for two months, U.S. inflation would also surge to its highest level since September 2023. Prediction platform Kalshi also judged that the likelihood of oil shipments returning to normal levels this year had diminished.

Markets see a possibility that global oil prices could continue their sharp rise unless concerns about supply disruptions around the Strait of Hormuz are easily resolved. In such an environment, bitcoin is more likely to react sensitively to macro factors along with risk assets such as stocks, rather than continuing an independent bullish trend.

For now, markets are expected to watch whether a surge in oil prices leads to fears of renewed inflation and prolonged tightening. Observers say bitcoin is unlikely to be free from the broader weakening trend in risk assets as long as uncertainty surrounding the Strait of Hormuz continues.

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