BTC, ETH price news: Bitcoin under pressure as oil spikes 6%. What's next?
Bitcoin and major cryptos fell as oil surged 6% due to the U.S.-Iran conflict, raising inflation fears and delaying Fed rate cuts.Summary
Bitcoin dropped to $66,702 on Monday as traditional markets priced in the weekend's U.S.-Iran military escalation, unwinding a brief Sunday rally. Ether, Solana, and XRP also saw declines. The primary market driver was the surge in Brent crude, which jumped over 6% as the Strait of Hormuz was effectively closed, impacting global oil flow. Higher energy prices fuel inflation expectations, pushing back the timeline for Federal Reserve rate cuts, which negatively affects risk assets like crypto. While some analysts, like Jeff Mei of BTSE, suggest downside risk is limited due to the world being weaned off Iranian oil, the market's direction remains dependent on the reopening of the Strait of Hormuz and the resolution of the conflict. Separately, the article notes that some altcoins, like Hyperliquid's HYPE token, benefited from increased trading activity related to the geopolitical tension.
(Source：CoinDesk)