Cryptocurrency markets and broader financial assets declined on Monday as tensions between the United States and Iran intensified for a fourth consecutive week, driving sharp fluctuations in oil prices.

US President Donald Trump warned in a Truth Social post that the US would “hit and obliterate” Iranian power plants, “starting with the biggest one first,” if Iran failed to reopen the Strait of Hormuz within 48 hours. Iran responded by stating it would retaliate against any strikes targeting its energy or water infrastructure with attacks on US and Israeli assets in the Gulf. It also threatened to fully shut down the Strait of Hormuz, a critical global oil transit route.

Bitcoin (BTC), often promoted as a “safe-haven” asset similar to gold, declined by 1.8% over the past 24 hours to around $68,160, after briefly falling below $67,600 late on Sunday.

The drop in Bitcoin’s price triggered a wave of liquidations across the cryptocurrency market. Data from CoinGlass shows that approximately $336.3 million in positions were wiped out in the past day, with nearly $100 million stemming from liquidated long positions on Bitcoin.

Crypto trades in line with risk assets

According to Rachael Lucas, an analyst at BTC Markets, the current behavior of crypto markets reflects broader risk sentiment rather than safe-haven dynamics. Crypto “is trading in lockstep with equities right now, not as a haven, and sentiment is sitting at historic lows, with the Fear and Greed Index deep in ‘extreme fear’ territory at 8.”

Equity markets in Asia also reacted negatively to the geopolitical developments. Australian and New Zealand markets both declined by around 0.8%, while Japanese equities dropped by more than 4%.

Oil markets experienced heightened volatility. Crude oil briefly surged above $100 per barrel during early Monday trading before falling to $97.20, later recovering to around $99.30. Brent crude, a global benchmark, rose above $114 before settling below $113.

Lucas noted that the direction of crypto markets will largely depend on both geopolitical developments and monetary policy decisions in the United States. She explained that the rise in oil prices is influencing inflation expectations, with the likelihood of a Federal Reserve rate hike increasing from zero to 12.4% within a single week.

“That is a significant macro repricing that crypto will continue to reflect until there is clarity on both fronts,” she added.

Key levels and outlook for Bitcoin

Lucas suggested that a de-escalation of the conflict could quickly support a recovery in crypto markets, though the current situation remains unpredictable. “crypto would be among the fastest risk assets to recover. However, this conflict has no clear negotiating counterpart and no defined exit timeline, which makes that outcome difficult to call in the near term.”

From a technical perspective, she identified $68,000 as a key level for Bitcoin to hold in order to maintain short-term support, with $65,800 acting as the next significant downside level if that support fails. “To the upside, Bitcoin needs to reclaim $71,500 before any recovery narrative gains credibility,” Lucas said.

Despite the recent decline, institutional demand remains present. Bitcoin exchange-traded funds have recorded net inflows of $1.43 billion so far this month. “When sentiment is this low and institutional infrastructure is this strong, history suggests the setup for recovery is building, even if the timing remains uncertain,” Lucas said.

Sources:

https://apnews.com/article/iran-us-israel-trump-lebanon-march-22-2026-16cc60862529b873666ce4c1f6529d78

https://cointelegraph.com/news/crypto-stocks-slip-oil-chops-iran-vows-retaliation-trump-threat

https://truthsocial.com/@realDonaldTrump/posts/116269822349947644

https://www.coingecko.com/en/coins/bitcoin

https://www.coinglass.com/liquidations