Key facts
- Bitcoin held above $78,000 despite U.S. military strikes on Iran.
- Oil prices surged, with WTI futures climbing 2.6% to $85.60.
- The S&P 500 fell 0.5% and the Nasdaq Composite dropped 0.4%.
- Fed Chair Kevin Warsh's remarks increased September rate-hike odds to 58%.
- Bitcoin is set for its strongest August since 2017, up over 24%.
Bitcoin remained resilient above $78,000 on Monday, showing composure despite fresh U.S. military strikes on Iran that sent oil prices higher and equities lower. The cryptocurrency traded around $78,623, down 0.7% over 24 hours, but is on track for its strongest August since 2017 with a gain exceeding 24%.
The geopolitical escalation, which included U.S. strikes on Iran's Larak Island and Iran's retaliation against U.S. air bases, revived fears over shipping through the Strait of Hormuz and boosted crude oil prices. West Texas Intermediate futures climbed 2.6% to approximately $85.60 a barrel.
Equities dipped, with the S&P 500 off 0.5% and the Nasdaq Composite down 0.4%. Compounding pressure on risk assets were hawkish remarks from Fed Chair Kevin Warsh at Jackson Hole, which pushed September rate-hike odds to around 58%. Even gold pulled back.
Bitcoin's steadiness was highlighted by analyst Iliya Kalchev, who noted that its ability to hold ground against both geopolitical escalation and a hawkish Fed is a significant signal. Derivatives data showed increased trading volume but flat open interest, suggesting traders are repositioning rather than adding new capital.
Bitcoin's August rally had stalled late last week following Warsh's comments, and spot Bitcoin ETFs saw their nine-day inflow streak snapped, although Ethereum funds continued to attract cash. Ethereum traded near $2,448, heading into month-end with a gain approaching 30%.