Oil prices may push above $90, pressuring the market. Bitcoin drops below $71,000, and the Crypto Fear & Greed Index falls to 18.

March 6 News: Macroeconomic pressures are clearly weighing on the cryptocurrency market. Data from prediction market platform Polymarket shows that the probability of U.S. crude oil prices surpassing $90 per barrel this month has risen to 73%, the highest since October 2023. Amid rising energy cost expectations, Bitcoin has fallen below $71,000, while the crypto market’s fear and greed index has dropped to 18, indicating “extreme fear.”

Market data shows Bitcoin has declined about 2.6% in the past 24 hours, losing the key $71,000 level, though weekly gains remain around 4.3%. Ethereum has also weakened, dropping approximately 2.5% to hover around $2,075. Among major altcoins, Solana has fallen nearly 3%, approaching $88, while XRP stays around $1.40. Overall, the market remains under pressure.

Oil price expectations are now a key variable for market focus. Rising energy prices typically boost inflation expectations, increasing costs across transportation, manufacturing, and consumer sectors. Heightened inflation pressures often influence the Federal Reserve’s interest rate path, and higher rates generally suppress risk assets, including cryptocurrencies. If oil prices continue to approach or break through $90, it could signal a new upward cycle in energy costs.

Additionally, rising energy prices directly impact Bitcoin mining. Mining operations are highly dependent on electricity, so increased energy costs can further squeeze miners’ profit margins. In a tight profit environment post-halving, some miners may choose to sell more Bitcoin to cover costs, adding additional selling pressure to the market.

Meanwhile, macroeconomic uncertainties remain unresolved. Global trade tensions and slowing growth in major economies have made institutional investors more cautious in asset allocation. Cryptocurrencies are still viewed as high-volatility risk assets, so when macro sentiment weakens, capital tends to withdraw first from related positions.

However, extreme fear has historically often preceded market rebounds. When the fear and greed index hits low levels, it usually indicates that much of the pessimism has already been priced in. Some market participants see this as a potential medium-term buying signal, though this strategy requires strong risk tolerance.

Going forward, the trend of oil prices and key technical levels for Bitcoin will be important market indicators. If crude oil fails to break above $90, current panic may quickly subside; but if energy prices continue rising, volatility in risk assets could intensify. Meanwhile, whether Bitcoin can hold the $70,000 level will be a crucial short-term turning point.