Bitcoin price slipped to $66,702 in early Monday trading, down 1.1% over the past 24 hours, as global financial markets reopened and began reacting to escalating U.S.-Iran tensions. Over the weekend, crypto markets traded largely in isolation, but renewed volatility hit as traditional markets priced in geopolitical risk.
Sunday’s brief rebound to $68,000 following confirmation from Iran’s Supreme Leader Ayatollah Ali Khamenei was largely erased, with BTC returning to the mid-$66,000 range seen before the latest military strikes. The broader cryptocurrency market also faced selling pressure. Ethereum fell 2.5% to $1,967, Solana dropped 4.1% to $84, and XRP declined 3.6% to $1.36. On a weekly basis, Solana leads major token losses, down 8.1%, highlighting sustained weakness across altcoins.
Oil prices are driving much of the current market narrative. Brent crude surged as much as 13% at the open before settling near $77.50, still up 6.4% — its largest jump since Russia’s 2022 invasion of Ukraine. Reports indicate the Strait of Hormuz, a critical passage for roughly 20% of global oil supply, is effectively closed. Rising energy prices are fueling inflation concerns, potentially delaying Federal Reserve rate cuts and tightening liquidity conditions that typically pressure risk assets like Bitcoin and other cryptocurrencies.
Meanwhile, traditional markets reflected growing uncertainty. Asian equities dropped 1.4%, U.S. stock futures fell 0.7%, and gold climbed to $5,350 per ounce as investors sought safe-haven assets.
Despite the volatility, some analysts suggest downside risk for crypto may be limited. Jeff Mei, COO at BTSE, noted that Iran’s long-standing isolation from global financial markets could reduce broader contagion effects. Additionally, increased oil production from OPEC and the U.S. may help stabilize crude prices.
For now, Bitcoin and the wider crypto market remain highly sensitive to geopolitical developments, inflation expectations, and shifts in global liquidity as investors navigate a rapidly evolving risk environment.
