Markets had barely settled from a rough weekend before the index was being watched again as a barometer of just how shaky confidence remains in the crypto space.
The trouble started Saturday when Iran said it would shut down key oil shipping lanes through the Strait of Hormuz.
Bitcoin, which had climbed to $78,300 on Coinbase late Friday — its strongest price since early February — quickly gave up those gains. By Saturday and into early Sunday, it had slid to between $75,000 and $76,000.
Tehran called the move a ceasefire violation and vowed retaliation. Iran also pulled out of peace talks scheduled for Monday in Islamabad, Pakistan.
Bitcoin dropped sharply. It briefly fell under $74,000.
Crypto was not the only market caught off guard. S&P 500 futures fell 0.78% Sunday night. Nasdaq-100 futures dropped 0.6%. Dow Jones futures lost roughly 450 points, or about 0.89%.
Ceasefire Expiry Puts Wednesday In FocusThe coming days will likely determine where things head next. With Iran rejecting new negotiations and the ceasefire window closing fast, traders are watching closely.
The brief rally Bitcoin enjoyed last week, built partly on hopes that US-Iran tensions were cooling, has been wiped out.
Featured image from Meta, chart from TradingView
