The crypto crash continued on Monday morning, continuing a trend that has been going on since the weekend. Bitcoin price dropped to $65,000, while the market capitalization of all coins dropped by over 1% to $2.28 trillion.
Crypto Crash is Continuing
Most cryptocurrencies were in the red today, with Humanity Protocol, Pippin, Worldcoin, OKB, and Cosmos falling by over 5%. On the other hand, the top gainers were tokens like DeXe, Chiliz, Bittensor, and LayerZero.
The ongoing crypto crash mirrored the performance in the stock market. Data show that the Dow Jones, S&P 500, and Nasdaq 100 Index futures dropped by over 2.2%, their worst performance in months.
Similarly, futures linked to the DAX Index dropped by over 3%, while those tied to the FTSE 100 and CAC 40 dropped by over 1%.
Asian indices were in the red, with Japan’s Nikkei 225 falling by over 7% and South Korea’s Kospi crashing by over 8%. Other indices like the Nifty 50 and the Hang Seng tumbled by over 2%.
This stock and crypto market crash coincided with the ongoing rally in the commodities market, with Brent and West Texas Intermediate (WTI) jumping to $114. The two ended last week at $90 a barrel.
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War in Iran Pushed Crude Oil to a Multi-Year High
This price action is happening because of the ongoing war in Iran, which escalated during the weekend. Israel targeted key Iranian energy infrastructure, while Iran targeted some key countries in the region. As a result, Kuwait and the United Arab Emirates announced that they were reducing their crude oil output, joining other countries like Saudi Arabia and Qatar.
Therefore, there is a risk that the ongoing surge in energy prices will lead to higher inflation in the United States and other countries, making it difficult for central banks to cut interest rates, which many crypto traders were expecting.
As a result, the upcoming US consumer inflation report will likely have a minimal impact on the market. This explains why US bond yields are soaring, with the 10-year and 30-year rising to 4.210% and 4.84%.
On the positive side, the ongoing stock market crash may have a major influence on the war ending as Trump always looks at the performance. A continued decline will push him to start talking about an end to the war, which will lead to a reversal, as we saw last year when the stock market tumbled after his “Liberation Day”.
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