Bitcoin is hovering near $63,000 after falling more than 1% since midnight UTC amid a broader wave of risk-off sentiment following mutual airstrikes by the US and Iran over the weekend.
Brent crude futures rose more than 3% to near $79 a barrel. barrel as the renewed fighting raised concerns about shipping through the Strait of Hormuz, a vital oil passage. Higher energy prices add to inflationary pressures and reduce the scope for easier monetary policy, a link that weighed on bitcoin during previous oil shocks.
“This week, crypto markets will experience a ‘tug of war’ between macro and geopolitics,” Taran Dhillon, head of digital assets at Kula, told CoinDesk.
U.S. inflation numbers due this week will shape interest rate expectations, Dhillon said.
Still, spot bitcoin and ether ETFs just broke an eight-week streak of outflows, a sign of rising demand for the two biggest cryptocurrencies.
Regulatory clarity could add additional tailwinds, Dhillon noted, as the Clarity Act moves forward. While ethical provisions are still being debated, “even incremental progress is important,” he said.
