Crypto stocks drop as oil swings on Iran tensions

Crypto and global markets declined on Monday as escalating threats between the US and Iran triggered volatility across oil, equities and digital assets.

Bitcoin fell 1.8% to around $68,160 after briefly dropping below $67,600, while broader crypto markets saw $336 million in liquidations, including roughly $100 million in failed long positions.

“Crypto is trading in lockstep with equities right now, not as a haven, and sentiment is sitting at historic lows, with the Fear and Greed Index deep in ‘extreme fear’ territory at 8,”

Said BTC Markets analyst, Rachael Lucas.

The market reaction followed a US ultimatum to Iran over reopening the Strait of Hormuz, with Tehran threatening to strike regional infrastructure and potentially close the key oil shipping route.

Oil prices surged and reversed sharply, with Brent crude briefly rising above $114 per barrel before easing below $113, highlighting uncertainty around supply risks.

The spike in energy prices has pushed inflation expectations higher, with markets now pricing a 12.4% chance of US Federal Reserve rate hikes, up from zero just a week earlier.

Bitcoin now faces key levels at $68,000 for near-term support and $71,500 for a recovery signal, as institutional inflows remain strong despite ongoing geopolitical uncertainty.

At the time of reporting, Bitcoin price was $68,404.44.