Bitcoin Holds Around $64K as Oil Surge and AI Market Jitters Weigh on Sentiment

Brent crude surged nearly 4% as escalating U.S.-Iran strikes fueled concerns in energy markets, while Asian semiconductor stocks remained pressured following Friday’s shock from China’s latest AI developments.

Bitcoin traded near the $64,000 level on Monday as investors weighed two competing forces: rising oil prices driven by geopolitical tensions and continued uncertainty in equities following the launch of Moonshot AI’s latest Kimi model, which disrupted markets at the end of last week.

The largest cryptocurrency was changing hands around $64,200, little changed on the day but still up about 3% over the past week, with approximately $18 billion in trading volume. Ether traded near $1,860, gaining 5% over seven days and once again outperforming other major cryptocurrencies.

Most other large-cap tokens showed limited movement. XRP remained around $1.09, Solana traded near $76, BNB slipped to $565 and dogecoin stayed close to $0.07. Hyperliquid’s HYPE was the notable laggard, falling 10% over the week to $60 as the broader risk-off environment continued to weigh on the token.

Oil remained the main focus for global markets. Brent crude climbed as much as 4% to $91.42 per barrel, reaching its highest level since June, as U.S. and Iranian strikes expanded beyond traditional military targets. The move revived inflation concerns that had recently eased following softer-than-expected U.S. inflation data.

Technology stocks and AI-related investments were still recovering from Friday’s selloff. Moonshot AI’s Kimi K3, a Chinese open-weight AI model that topped a major coding benchmark, triggered a sharp decline in semiconductor stocks and contributed to weakness across crypto markets.

The impact continued into Asian trading on Monday, with South Korea’s Kospi dropping 3.5% as investors returned after a holiday break. U.S. futures stabilized, with Nasdaq 100 futures rising 0.5%, but concerns surrounding the AI sector remained unresolved.

For cryptocurrency markets, the opposing forces largely balanced each other out. Higher oil prices linked to geopolitical risks create inflation concerns that could limit expectations for Federal Reserve rate cuts, while China’s AI breakthrough has pressured semiconductor stocks that bitcoin has closely tracked in recent weeks.

This week’s key market signal is expected to come from corporate earnings rather than economic data. With no major U.S. economic reports scheduled, investors will focus on results from major technology companies, including Alphabet on Tuesday, Tesla on Wednesday and Intel on Thursday.

Following last week’s weakness in AI and semiconductor shares, those earnings reports could determine whether artificial intelligence investment remains strong and whether the shift by crypto miners toward AI-focused data centers continues to gain support.