Oil Surge and Iran War Lift Bitcoin as Crypto Sentiment Improves

Bitcoin and the crypto markets are entering the new week with gains and improved sentiment, but the Strait of Hormuz remains the “world’s biggest dead end.”

Bitcoin price improves

Bitcoin is trading at around $74,000 on Monday morning, having made a good start to the new week with a 3.5 percent gain. Bitcoin ETFs saw an inflow of $767 million last week, a respectable result.

For the past two weeks, the war over Iran has been raging, leading to striking developments in the financial markets. Bitcoin has risen in price by almost 20 percent during this period, while oil has gained around 45 percent. Gold, on the other hand, has lost about 6 percent of its price, and major stock indices have also slipped into negative territory due to the Iran crisis.

Observers attribute Bitcoin’s success in this tense global political situation to the 24/7 availability of highly liquid trading platforms for BTC. This allows traders to react to news from Iran with Bitcoin, the “digital gold,” even when traditional stock exchanges are closed, as was the case this past weekend.

Ethereus follows the footsteps of Bitcoin

Ethereum can start the week with a 7.5 percent daily gain and prices of just over $2,600. Ethereum ETFs saw $161 million in new capital inflows last week, supporting the trend.

The Ethereum Foundation has published a “mandate” outlining its self-direction. The foundation emphasizes that it is “not the parent, owner, or decision-maker of Ethereum.” Its goal is to gradually reduce its influence and make itself redundant for Ethereum. Until then, however, the most important grassroots organization for ETH appears to be focusing on censorship resistance and user self-sovereignty. Those in the Ethereum community who advocate for closer ties to the business world are likely to be disappointed by the new “ETH mandate.”

A look at the altcoins performance

The meme coin PEPE is the day’s top performer with a gain of around 13 percent. PEPE launched in 2023, subsequently weathered a self-inflicted crisis , and then corrected sharply after reaching its peak at the end of 2024. At first glance, the recent PEPE price surge appears to be driven by speculation.

SKY is the day’s biggest loser, with a daily loss of around 5 percent. The project, which ran under the name Maker (MKR) until late summer 2024 , recently drastically reduced its share buyback program, driving SKY’s price curve into negative territory.

The sentiment barometer for the crypto markets shows “Neutral” for the first time since mid-January, thus temporarily leaving fear levels. Whether this shift in sentiment will be confirmed will become clear in the coming days.

Former British Prime Minister Boris Johnson went out on a limb, calling Bitcoin a “Ponzi scheme,” a type of pyramid scheme. Cryptocurrency luminaries immediately rallied to Bitcoin’s defense , from Strategy CEO Michael Saylor to Tether CEO Paolo Ardoino. Johnson also received community notes for his anti-Bitcoin polemic; the 61-year-old apparently hasn’t grasped the decentralized BTC concept intellectually.

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(Featured image by Coinhako via Unsplash)

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