Bitcoin and other cryptocurrencies already took a hit on Saturday after the US announced it had begun a bombing campaign against Iran.
Bitcoin and other cryptocurrencies already took a hit on Saturday after the US announced it had begun a bombing campaign against Iran. A cautious recovery followed news that Ayatollah Ali Khamenei had been assassinated, but prices were little changed from Friday’s levels. The native cryptocurrency rose about 1.3 percent to about $66,500 as of 11:20 a.m. in Singapore on Monday.
Traditional markets in Asia, meanwhile, offered a taste of what’s to come throughout the day as investors react to the latest news of conflict in the Middle East. Benchmarks including Japan’s Nikkei 225 and Hong Kong’s Hang Seng index fell, while oil saw its biggest price rise in four years.
“The focus this morning is primarily on oil, with all eyes on the evolving situation in the Strait of Hormuz,” said Caroline Mauron, co-founder of Orbit Markets, citing disruptions to trade through the critical Gulf waterway. “Crypto is a sideshow for now and will remain so as long as it remains between $60,000 and $70,000 in recent weeks.”
Higher oil prices would likely weigh on cryptocurrency prices, which are sensitive to expectations about US Federal Reserve policy. Inflation due to higher energy costs could undermine expectations for the next rate cut, which could negatively impact risky investments. Crypto has typically traded more in line with stocks than with assets like gold.
Haven’s assets have soared in the aftermath of the bombings. Ten-year Treasury yields fell to their lowest level since October 2024, while gold rose 1.4 percent to around $5,350 an ounce on Monday morning.
The U.S. dollar strengthened the most among its Group of 10 peers, rising in early trading in Asia on expectations the greenback would remain an effective hedge against higher energy prices.
In the crypto world, tokenized assets had already priced in the conflict in the Middle East for oil, gold and silver. Perpetual swap futures – contracts with no expiration date – tied to these commodities rose this weekend on Hyperliquid, a 24/7 trading platform.
Gold contracts rose 1.36 percent to $5,354.10 an ounce on Monday morning, while oil and silver contracts fell.
“Since the escalation in Iran, crypto has clearly taken a backseat to traditional geopolitical hedges,” said Charlie Sherry, head of finance at BTC Markets. “During periods of geopolitical stress, capital turns into hard assets, not high-beta risk proxies.”
That caution is on display in the Bitcoin options market, where about $1.9 billion worth of puts are concentrated at the $60,000 strike price on Deribit, indicating continued demand for downside protection.
What is striking, however, is the lack of follow-up sales, according to Sherry.
“When markets stop falling on bad news, it could indicate seller exhaustion and the possibility of a short-term bottom,” he said. “That is not confirmation of a trend reversal, but it is a condition for monitoring.”
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Published on March 2, 2026
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