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Bitcoin declined on Monday, extending losses from the weekend as escalating geopolitical tensions in the Middle East pushed investors away from risk-sensitive assets.
By 01:34 ET (05:34 GMT):
- Bitcoin fell 0.7% to $68,652
The world’s largest cryptocurrency has now given back part of its recent gains, as markets reassess the broader economic fallout from the intensifying conflict between the United States, Israel, and Iran.
Geopolitical escalation weighs on sentiment
Over the weekend, U.S. President Donald Trump issued a 48-hour ultimatum demanding that Iran reopen the Strait of Hormuz, warning of potential strikes on critical infrastructure.
Iran responded with strong threats, including:
- A full closure of the Strait of Hormuz
- Potential attacks on energy and water infrastructure across Gulf countries
With the conflict now entering its fourth consecutive week, uncertainty has deepened across global markets, triggering a widespread risk-off move affecting equities, currencies, commodities, and cryptocurrencies.
Inflation and rate fears pressure crypto
The key concern for investors is no longer just geopolitics, but its economic consequences.
The conflict has:
- Driven oil prices sharply higher
- Increased expectations of energy-driven global inflation
This has led markets to:
- Scale back expectations for interest rate cuts
- Price in a more hawkish stance from central banks
Higher interest rates typically weigh on speculative assets like Bitcoin by tightening liquidity and increasing the attractiveness of safer, yield-bearing investments.
Bitcoin shows relative resilience vs gold
Despite the pullback, Bitcoin has held up relatively better than traditional safe-haven assets in recent weeks:
- Bitcoin: up about 6% over the past month
- Gold: down about 18% over the same period
Gold has struggled under pressure from rising yields and a stronger dollar, while Bitcoin has found some support from:
- Improving U.S. regulatory outlook
- Dip-buying after a sharp correction from late-2025 highs
However, on a year-to-date basis, Bitcoin remains weaker:
- Bitcoin: down over 20% in 2026
- Gold: roughly flat
Altcoins follow Bitcoin lower
The broader crypto market also moved lower amid ongoing uncertainty:
- Ethereum: -2.2% to $2,061
- XRP: -1.9%
- BNB, Solana, Cardano: down between 0.5% and 2.5%
- Dogecoin: -1.3%
- $TRUMP token: -2.2%
Outlook
Bitcoin’s near-term direction remains tightly linked to:
- Developments in the Middle East conflict
- Oil price movements
- Inflation expectations and central bank policy
While structural support from regulation and long-term adoption remains intact, short-term price action is likely to stay volatile as markets balance geopolitical risks with macroeconomic pressures.
