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Bitcoin falls to $103K, options skew hits 3-month low as mideast tensions drive oil prices higher
- Middle East tensions led to a spike in oil prices and a flight to safety in global markets.
- Bitcoin (BTC) faced a notable price drop as traders sought downside protection through put options.
- Bitcoin options skew hit a 3-month low, with put options becoming pricier relative to call options.
- The demand for protective puts showed growing unease about Bitcoin's short-term trajectory.
- Bitcoin's price fell to $103,150 amidst geopolitical uncertainty and a 4.59% loss over 24 hours.
- Oil prices surged over 6% to $74.30 following Israeli airstrikes on Iran and Tehran's retaliatory missile action.
- Rising oil prices could lead to global inflationary pressures, impacting Fed policy and market expectations.
- Traditional markets reacted with a 1.5% decline in US and European stock index futures.
- Investors favored safety assets like bonds, gold, and safe-haven currencies amidst the market volatility.
- The 10-year Treasury yield decreased to 4.32% as demand for US government debt increased.
- US dollar strengthened against the euro and British pound, but weakened against safe-haven currencies.
- Market participants are cautious about potential downside volatility in stocks and cryptocurrencies.
- Bitcoin's 50-day SMA at $103,150 is seen as a critical support level amidst the price decline.
- The surge in demand for protective puts reflects concerns about Bitcoin's near-term performance.
- Oil price spike and geopolitical tensions highlight potential economic and market stability risks.
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