Bitcoin traded mostly unchanged during Asian hours on Monday after declining over the weekend, as rising geopolitical tensions in the Middle East pushed oil prices higher and unsettled global financial markets.
The world’s largest cryptocurrency was down about 0.3% at $67,125.8 as of 03:22 ET (07:22 GMT). Earlier in the session, Bitcoin briefly dropped below the $66,000 level before recovering slightly.
Despite last week’s broader weakness in global risk assets, Bitcoin managed to finish the week with modest gains, partly because the cryptocurrency market has limited direct exposure to the oil sector. However, the rally lost momentum over the weekend as macroeconomic uncertainty intensified.
Oil prices surged sharply on Monday, with crude briefly approaching $120 per barrel. The spike followed escalating military exchanges involving the United States, Israel, and Iran, which raised fears of prolonged disruptions to oil shipments through the Strait of Hormuz, one of the world’s most critical energy transport routes.
The conflict entered its second week without signs of de-escalation. Iran also announced that Mojtaba Khamenei would succeed his father, Ali Khamenei, as supreme leader, a development widely interpreted as a continuation of hardline political policies and ongoing geopolitical tensions.
The sharp increase in energy prices has reignited concerns about global inflation and complicated expectations for central banks, which had previously been expected to gradually loosen monetary policy this year.
Bitcoin often behaves like a high-beta risk asset during periods of macroeconomic uncertainty. As a result, the cryptocurrency tends to weaken when investors reduce exposure to riskier investments.
Global markets reflected this cautious sentiment. Asian stock markets declined sharply in early trading on Monday, while U.S. stock futures dropped by more than 2%.
Bitcoin’s weekend losses also highlight one unique feature of cryptocurrency markets: they operate continuously. Unlike traditional financial markets, digital assets trade 24 hours a day, allowing investors to react immediately to geopolitical developments even when stock markets are closed.
Altcoins also showed limited movement during Monday’s session. Ethereum, the second-largest cryptocurrency by market capitalization, rose slightly by 0.5% to $1,965.25.
XRP, the third-largest cryptocurrency, declined around 2% to $1.33. Meanwhile, Solana slipped 0.3%, Cardano gained 0.4%, and Polygon advanced 1.6%.
Among meme-based cryptocurrencies, Dogecoin recorded a modest increase of about 0.3%.
