Bitcoin drifted lower to around $66,700 on Monday as global financial markets reopened and began reacting to the weekend’s escalation between the U.S. and Iran. Oil prices jumped to $77 and Asian equities fell 1.4%, underscoring a broader shift toward risk aversion.
The world’s largest cryptocurrency changed hands at $66,702 in early trading, down 1.1% over the past 24 hours. Digital assets had been responding to developments largely in isolation since Saturday, but traditional markets weighed in as the new week began. A brief rally to $68,000 on Sunday — following remarks from Iran’s Supreme Leader, Ali Khamenei — has now largely reversed, with prices returning to levels seen prior to the strikes.
Performance across major tokens was uneven. Ether declined 2.5% to $1,967, solana slid 4.1% to $84, and XRP dropped 3.6% to $1.36. Over the past week, losses have deepened, with solana down 8.1%, marking the sharpest pullback among large-cap cryptocurrencies.
In traditional markets, Brent crude surged as much as 13% at the open before trimming gains to about $77.50, still up 6.4% — its biggest single-day spike since Russia’s invasion of Ukraine in 2022. Bloomberg reported that the Strait of Hormuz, a strategic passageway responsible for roughly one-fifth of global oil shipments, is effectively shut. Meanwhile, Asian stock indices dropped 1.4%, U.S. equity futures fell 0.7%, and gold advanced to $5,350 per ounce.
The surge in oil is emerging as a key variable for crypto markets. Elevated energy prices tend to lift inflation expectations, potentially delaying interest rate cuts from the Federal Reserve and tightening liquidity conditions — a headwind for speculative assets such as cryptocurrencies.
Geopolitical signals remain mixed. The Wall Street Journal reported that Iran may be seeking to restart nuclear negotiations with Washington, while Iran’s national security chief, Ali Larijani, said no talks would take place. U.S. President Donald Trump stated Sunday that military operations would continue until objectives are achieved, though The Atlantic indicated he has shown openness to discussions with Iran’s new leadership.
Some crypto executives argue that downside risks may be contained. Jeff Mei, chief operating officer at BTSE, said Iran’s limited integration into global financial markets reduces the potential for systemic spillover. While oil-driven inflation remains a concern, he noted that increased output from OPEC and the U.S. could help ease supply pressures.
For now, markets remain highly sensitive to developments around the Strait of Hormuz and the duration of military operations. Until those uncertainties clear, crypto is likely to trade as a macro-sensitive risk asset in an increasingly volatile geopolitical climate.
