Bitcoin slumps 2.2% as iran tensions escalate

Bitcoin slid 2.2% on Monday, wiping out gains from the previous day when it briefly soared above $70,000 for the first time since March, as tensions with Iran intensified ahead of a potential US military strike.

Market volatility continues amid geopolitical risks

The cryptocurrency's decline comes as the world waits for a potential showdown between the US and Iran, with President Trump threatening to attack Iranian infrastructure unless the Strait of Hormuz is kept open.

Oil prices surged on Monday, with Brent crude adding to its nearly 50% gains since the conflict began in late February. Gold, meanwhile, remained relatively stable, falling over 10% since the start of the war.

Bitcoin has managed to hold steady between $65,000 and $75,000 since early March, with its recent weakness attributed to a combination of factors, including ongoing geopolitical risks and the absence of institutional buying catalysts.

However, some analysts believe the cryptocurrency's fortunes could change soon, with two key events potentially driving a rebound: a sustained ceasefire between the US and Iran that leads to a drop in oil prices below $100 per barrel, and the approval of the US Clearinghouse Act by the end of April, which would provide much-needed regulatory clarity for institutional investors.