Bitcoin rallies past $68,000 as equities show limited response to Iran conflict.

Crypto markets are clawing back weekend losses in early U.S. trading Monday, tracking a sharp turnaround in equity futures that had earlier pointed to heavy declines.

At their lowest overnight levels, U.S. stock index futures were signaling losses of more than 2%. About an hour into the cash session, however, the damage appears limited. The Nasdaq Composite is down just 0.1%, while the S&P 500 and Dow Jones Industrial Average are posting only modest declines, reflecting a more measured reaction than initially feared.

Traditional safe havens remain bid. Gold is up 2% on the day, crude oil prices are holding gains of roughly 7%, and the U.S. dollar index is enjoying one of its strongest sessions in weeks with a 1% advance.

Bitcoin (BTC) has climbed to $68,600, up 2.3% over the past 24 hours. Ether (ETH) is ahead 1.4%, with Solana (SOL) and XRP (XRP) registering comparable gains. The rebound follows a volatile weekend that saw digital assets pressured alongside geopolitical tensions.

Crypto-linked equities are outperforming the broader market. Shares of Circle (CRCL) have surged 12%, while Strategy (MSTR) is up 6% and Galaxy Digital (GLXY) has added 4.7%, suggesting renewed risk appetite within the digital asset ecosystem.

On the macro front, economic data continue to point to strengthening activity. The ISM manufacturing PMI printed at 52.4 for February, marking another month of expansion and the first back-to-back readings above 50 since late 2022. This follows a stronger-than-expected Chicago Business Barometer reading of 57.7, signaling the fastest pace of U.S. activity growth since May 2022.

With Middle East tensions pushing oil prices higher, producer price data surprising to the upside last week, and manufacturing activity reaccelerating, expectations for a March rate cut have largely evaporated ahead of the Federal Reserve’s March 18 meeting.

While tighter monetary policy would typically weigh on crypto assets, markets may have already adjusted to the prospect of higher-for-longer rates, helping explain the relative resilience in digital assets and related stocks.