Bitcoin fights to stay afloat while global stock markets slide on Iran conflict

Despite months of sustained declines heading into the Middle East conflict, cryptocurrency markets have so far avoided making fresh lows this week.

Monday’s brief rally in global equities following the outbreak of war over the weekend now looks increasingly like a false start. By mid-morning U.S. time, risk assets were again sliding.

The Nasdaq dropped 2.5%, while the S&P 500 fell 2.3%. European markets faced steeper losses, with Italy’s IBEX 35 plunging 5.2% and Germany’s DAX falling 4.1%.

Precious metals, which had rallied strongly in the weeks prior to the conflict, also turned sharply lower. Gold dropped 4.3%, silver fell 7.5%, and platinum plunged 11.3%. Meanwhile, WTI crude oil extended its rally, rising another 8% to about $77 per barrel.

Crypto markets, though still weak overall, showed a degree of relative strength. Bitcoin hovered near $68,000, down 1% over the past day but more than 2% above its session lows.

Ether, Solana and XRP also rebounded from earlier declines, though they remained slightly lower on the day.

Crypto-linked equities, however, continued to face heavy selling pressure. Robinhood shares dropped 7%, Coinbase fell 5%, while Strategy and Bullish each lost about 4%. Circle declined roughly 1%.

James Butterfill of CoinShares said bitcoin’s around-the-clock trading often causes it to absorb shocks first during market stress. This time, he noted, bitcoin’s price performance has been relatively constructive, with limited liquidation activity despite rising geopolitical risks.