Bitcoin is hovering around $63,000 after falling more than 1% since midnight UTC, amid a broader wave of risk aversion following mutual airstrikes by the United States and Iran over the weekend.
Brent crude futures rose more than 3% to approach $79 a barrel as renewed fighting raised concerns about shipping through the Strait of Hormuz, a vital oil passage. Rising energy prices add inflationary pressures and reduce opportunities for monetary policy easing, a link that has weighed on bitcoin during previous oil shocks.
“This week, crypto markets will experience a ‘tug of war’ between macro and geopolitics,” Taran Dhillon, head of digital assets at Kula, told CoinDesk.
U.S. inflation data to be released this week will shape interest rate expectations, Dhillon said.
Yet Bitcoin and Ether spot ETFs just broke an eight-week outing streak, a sign of growing demand for the two largest cryptocurrencies.
Regulatory clarity could add tailwinds, Dhillon noted, as the Clarity Act advances. Although ethical provisions are still under discussion, “even incremental progress is important,” he said.
