Bitcoin tries to hold ground as global stocks tumble amid Iran war

After falling sharply in the months leading up to escalating tensions in the Middle East, cryptocurrency markets have so far managed to avoid setting new lows this week.

A modest rebound in global equities on Monday, which followed the outbreak of a new Middle East conflict over the weekend, now appears to have been short-lived. By mid-morning U.S. trading hours, major stock indices were once again under heavy pressure.

The Nasdaq dropped 2.5% to session lows, while the S&P 500 declined 2.3%. European markets fared even worse, with Italy’s IBEX 35 plunging 5.2% and Germany’s DAX sliding 4.1%.

Precious metals, which had rallied to record highs in the weeks leading up to the conflict, also reversed sharply. Gold fell 4.3%, silver declined 7.5%, and platinum tumbled 11.3%. Meanwhile, WTI crude oil continued its surge, climbing another 8% to around $77 per barrel.

Despite a roughly five-month downtrend, crypto assets are showing signs of relative resilience. Bitcoin traded near $68,000, down about 1% over the past 24 hours but more than 2% above its intraday lows.

Other major tokens followed a similar pattern. Ether, Solana, and XRP also posted daily declines but recovered notably from earlier session losses.

Crypto-related equities, however, remained under pressure. Shares of trading platform Robinhood dropped 7%, while Coinbase slid 5%. Strategy and crypto platform Bullish each declined about 4%, and stablecoin issuer Circle fell roughly 1%.

According to James Butterfill, head of research at CoinShares, bitcoin’s weekend liquidity often makes it the asset that initially absorbs market shocks.

“Historically, bitcoin, as the only liquid asset that also trades on weekends, has absorbed shocks during periods of forced risk reduction,” Butterfill said. “This time the price action was constructive, with bitcoin rising despite increasing instability. The lack of significant liquidations amid higher yields and geopolitical tension suggests market positioning may already be adjusted compared with previous episodes.”