Hassan Maishera
TL;DR
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BTC is trading above $66k after retesting the $63k level over the weekend.
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The price volatility comes amid the ongoing conflict between Iran, the United States, and Israel.
U.S.-Iran Conflict Keeps BTC Down, Oil Prices Soar Higher
The cryptocurrency market has opened the new weekly candle bearish as Bitcoin is currently trading below $67k.
The leading cryptocurrency by market cap is down 1% in the last 24 hours and now changes hands at $66,620 per coin. It has slightly recovered after retesting the $63k level on Friday.
The volatility comes amid the ongoing conflict between the United States (and Israel) and Iran. Broader cryptocurrencies declined alongside bitcoin, while oil prices spiked and global equities slipped as markets reacted to the U.S.-Iran conflict and the closure of the Strait of Hormuz.
Bloomberg reported that the Strait of Hormuz, through which roughly a fifth of the world's oil flows, is effectively closed.
While cryptocurrencies and equities are in the red, Gold and Oil prices are rallying. Brent crude surged as much as 13% at the open before settling around $76, still up 5%, the biggest jump since Russia's invasion of Ukraine in 2022.
Meanwhile, Gold is trading at $5,376, up nearly 2% in the last 24 hours. Most cryptocurrency traders are more concerned about crude oil’s price.
Higher energy prices directly affect inflation, which pushes back the timeline for Fed rate cuts. This could tighten the liquidity conditions that drive risk asset prices.
Trump said on Sunday that the bombing campaign will continue until objectives are achieved. However, reports emerged that he agreed to talk with Iran's new leadership.
