Bitcoin is hovering around $63,000 after falling more than 1% since midnight UTC amid a broader wave of risk-off sentiment following mutual US and Iranian airstrikes 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. Higher energy prices add inflationary pressure and reduce the room for looser monetary policy, a link that weighed on bitcoin during previous oil crises.
“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 due this week will shape expectations for interest rates, Dhillon said.
Still, bitcoin and ether spot ETFs just broke eight-week streaks of capital outflows, a sign of growing demand for the two largest cryptocurrencies.
Regulatory clarity may add more tailwinds, Dhillon noted, as the Clarity Act moves forward. While ethical provisions are still being discussed, “even incremental progress is important,” he said.
