Cryptocurrency markets, which had already endured months of steady declines ahead of the Middle East conflict, have so far avoided printing fresh lows this week.
The modest rebound seen in equities after the weekend escalation now appears fleeting. By mid-morning in the U.S., selling pressure returned across global markets.
The Nasdaq dropped 2.5%, while the S&P 500 fell 2.3%. European stocks experienced deeper losses, with Italy’s IBEX 35 tumbling 5.2% and Germany’s DAX declining 4.1%.
Precious metals also retreated sharply after reaching historic highs ahead of the conflict. Gold slipped 4.3%, silver fell 7.5%, and platinum plunged 11.3%. In contrast, energy markets continued to rally, with WTI crude oil climbing 8% to roughly $77 a barrel.
Crypto assets, though still under pressure, have shown relative stability compared with other markets. Bitcoin traded around $68,000, down roughly 1% over the last 24 hours but recovering more than 2% from its intraday lows.
Ether, Solana and XRP also bounced from earlier declines, despite remaining slightly negative on the day.
Crypto-related stocks did not share the same resilience. Robinhood dropped 7%, Coinbase lost 5%, and both Strategy and Bullish fell around 4%. Stablecoin issuer Circle performed somewhat better but still slipped about 1%.
James Butterfill, head of research at CoinShares, noted that bitcoin often acts as a shock absorber during periods of forced market deleveraging because it trades continuously, including weekends.
According to Butterfill, the absence of large liquidations despite rising yields and geopolitical tensions suggests investors may already be better positioned than in past crises.
