Crypto investors are staying on the sidelines as geopolitical tensions and an oil price shock weigh on markets, according to Grayscale.
The asset manager said rising energy prices have disrupted expectations for interest rate cuts, increasing inflation concerns and dampening risk appetite across global markets.
“The war in Iran overshadowed virtually all other market developments in March,”
Said Grayscale research team.
Bitcoin and other cryptocurrencies have traded in a volatile but largely rangebound pattern, with prices reacting sharply to headlines tied to oil and shifting macro sentiment.
Despite recent declines, crypto has shown relative resilience compared with traditional assets, supported by modest inflows into investment products and increased futures positioning.
Grayscale said a sustained rebound will likely depend on easing geopolitical tensions and stabilising energy prices, though it described the current environment as a potential entry point for long-term investors.
The firm also highlighted continued structural growth in the sector, noting that stablecoin supply has expanded from about $20 billion in 2020 to roughly $315 billion, reflecting rising adoption across trading and payments.
At the time of reporting, Bitcoin price was $66,992.64.