Bitcoin hovered near $66,700 on Monday as investors across traditional markets returned from the weekend and began factoring in the latest U.S.–Iran escalation. Oil prices jumped sharply, while Asian equities declined, reflecting a broader shift into defensive positioning.
The flagship cryptocurrency traded at $66,702 in early session dealings, down 1.1% over the past 24 hours. After moving largely on its own through the weekend, crypto markets began aligning with macro sentiment as global exchanges reopened. A brief rally to $68,000 on Sunday — sparked by developments involving Iran’s Supreme Leader, Ali Khamenei — has since faded, with Bitcoin returning to pre-strike levels in the mid-$66,000 range.
Losses extended across major altcoins. Ether slipped 2.5% to $1,967, solana declined 4.1% to $84, and XRP fell 3.6% to $1.36. Over the past week, solana has posted the steepest drop among leading tokens, down 8.1%.
Oil markets registered the most dramatic move. Brent crude surged as much as 13% at the open before moderating to roughly $77.50, still up 6.4% — marking its sharpest spike since Russia’s invasion of Ukraine in 2022. Bloomberg reported that the Strait of Hormuz — a strategic waterway responsible for about one-fifth of global oil shipments — is effectively closed. Asian stock benchmarks dropped 1.4%, U.S. equity futures slid 0.7%, and gold advanced to $5,350 per ounce.
The rise in oil prices may carry broader implications for digital assets. Elevated energy costs tend to lift inflation expectations, potentially delaying anticipated Federal Reserve rate cuts and tightening liquidity — conditions that historically pressure risk assets, including cryptocurrencies.
Geopolitical signals remain mixed. The Wall Street Journal reported that Tehran could be seeking to restart nuclear negotiations with Washington. However, Iran’s national security chief, Ali Larijani, dismissed the possibility of talks. U.S. President Donald Trump said Sunday that military operations would continue until objectives are met, though The Atlantic suggested he may be open to engaging with Iran’s new leadership.
Some industry figures believe the downside for crypto may be limited. Jeff Mei, chief operating officer at BTSE, noted that Iran’s longstanding isolation from global financial markets reduces the likelihood of systemic spillover. While higher oil prices could stoke inflation fears, he added that additional output from OPEC and the U.S. may help cap further energy gains.
For now, markets remain highly sensitive to developments surrounding the Strait of Hormuz and the duration of the military campaign. Until there is greater clarity, cryptocurrencies are likely to continue trading in tandem with broader macro risk trends in an increasingly volatile global environment.
