Crypto markets retreated sharply on Monday as a surge in oil prices above $116 per barrel triggered broad risk-asset selloffs. Bitcoin failed to hold $68,000, falling below $66,000, while the total crypto market capitalization shed $40 billion. Key US inflation reports due this week are expected to add further volatility amid heightened geopolitical tensions affecting energy markets.
Crypto markets erased last week’s gains on Monday as digital assets fell alongside commodities and US stock futures. The only asset rising was oil, with crude prices skyrocketing to $116 per barrel as futures opened higher.
The geopolitical situation has resulted in major volatility. The Kobeissi Letter described it as a historically significant day, noting US stock market futures erased over $2 trillion.
A busy week lies ahead for investors, starting with February’s Consumer Price Index inflation data on Wednesday. The delayed January reading of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures price index, is due Friday.
The PCE print is expected to show prices increased 0.4% month-on-month in January. This timing is significant ahead of the Federal Reserve‘s rate-setting meeting on March 18.
President Donald Trump commented on the oil price surge, stating prices “will drop rapidly” when the “Iran nuclear threat is over.” He added this was a “very small price to pay.”
Crypto market capitalization retreated to $2.36 trillion over the weekend. Bitcoin saw resistance at $68,000 on Sunday before falling below $66,000.
Ether similarly failed to reclaim $2,000, falling back to $1,960. Most major altcoins remained mostly flat over the past 24 hours.
