Key Takeaways
- Bitcoin rebounded from under $65,200 to stabilize near $67,500, while alternative cryptocurrencies declined 3–8% over the week
- President Trump informed advisers he’s considering ending military operations against Iran regardless of Strait of Hormuz status
- S&P 500 futures surged 0.8% following the news; crude oil retreated from $107 to approximately $103
- The S&P 500 continues its most extended losing streak since 2022; MSCI Asia Pacific faces its worst monthly performance since 2008
- Cryptocurrency market capitalization remains steady at $2.32 trillion week-over-week, contrasting with Nasdaq 100’s roughly 5% decline
Bitcoin was changing hands at $67,545 Tuesday morning following a rebound from Monday’s brief drop beneath $65,200. The previous session’s low represented the weakest price level since the U.S.-Israeli military engagement with Iran commenced in late February.
Ethereum maintained its position above $2,000, trading at $2,062 with a 0.4% daily gain. Solana decreased 0.9% to $83.07, XRP fell 2.2% to $1.32, and dogecoin retreated 2.1% to $0.09. Among the top ten cryptocurrencies by market cap, Solana and XRP posted the most significant weekly declines at 8% and 6.4% respectively.
The aggregate cryptocurrency market valuation stands at $2.32 trillion, showing minimal change over the seven-day period. During this same timeframe, the Nasdaq 100 experienced a decline of approximately 5%.
According to a Monday report from The Wall Street Journal, President Trump has indicated to advisers his willingness to conclude military operations against Iran even if the Strait of Hormuz continues to experience significant disruption. Sources familiar with the discussions noted that forcibly reopening the strategic waterway would extend the conflict beyond his preferred four-to-six week timeframe.
Equity futures responded with substantial upward movement following the report. S&P 500 futures advanced 0.8%, Nasdaq 100 futures gained 0.7%, and Dow Jones futures jumped 0.9%.
Oil prices surrendered a portion of recent gains after the development. West Texas Intermediate crude had previously spiked to $107 before moderating to approximately $103. The session also saw Iran target a Kuwaiti crude oil tanker in Dubai.
Equity Markets Face Headwinds
The S&P 500 is currently experiencing its most prolonged consecutive daily decline since 2022. MSCI Asia Pacific is poised to record its weakest monthly showing since the 2008 financial crisis. The CBOE Volatility Index has remained elevated above 30, a threshold indicating heightened market uncertainty.
Treasury securities continued their rally while the U.S. dollar weakened against the majority of G10 currencies throughout the trading session.
Federal Reserve Chairman Jerome Powell stated that contagion risks in the private credit sector remain minimal, while indicating no pressing need for additional interest rate increases. According to his assessment, inflationary pressures appear well-contained at present.
Market participants are closely monitoring Tuesday’s release of March consumer confidence data and February’s Job Openings and Labor Turnover Survey for additional economic indicators.
Bitcoin Demonstrates Relative Strength Against Equities
JPMorgan analysts observed that Bitcoin is demonstrating greater resilience during the Iran crisis compared to precious metals like gold and silver. Gold has experienced an atypical losing streak during this period of active military conflict.
Alex Kuptsikevich, chief market analyst at FxPro, commented: “Crypto has pulled back, but appears stronger than stocks.”
He further noted that the cryptocurrency market is discovering support near February lows and exhibiting horizontal consolidation patterns, while equity markets are establishing a distinct downward trajectory.
Bitcoin has maintained a trading range between approximately $65,000 and $73,000 throughout the duration of the conflict. Monday’s temporary breach below $65,200 followed by a swift recovery above $67,000 suggested genuine buying interest at those depressed price levels.
WTI crude oil settled above the $100 mark for the first time since 2022 as the geopolitical situation entered its fifth week.
