Crypto has taken a hit from geopolitics. The weekend saw a slight rebound, but everything changed on Monday — Bitcoin dropped below $67K, losing most of its gains. Ether fell by 2-3%, Solana by 4%, and the rest of the market followed suit.

The key factor is oil. Prices surged by 6% amid tensions between the US and Iran, plus the threat of closing the Strait of Hormuz. This raised inflation concerns, and the market started to worry that the Fed wouldn’t rush to cut interest rates. Risk assets, including crypto, took a hit. Gold rose to $5,350, while stocks declined.

But here’s an interesting point — some traders say the decline could be limited. Iran has long been cut off from global markets, and OPEC and the US might offset the losses. The only question is whether the strait will open and how long the tension will last. For now, it’s unclear, and crypto is trading as a pure risk asset in a risky world.