Markets had barely settled from a rough weekend before the index was being watched again as a barometer of just how shaky confidence remains in the crypto space.

That unease has a clear cause. A two-week ceasefire between the US and Iran, which had given financial markets a brief lift and helped keep oil prices in check, is now under serious strain. It is set to expire Wednesday.

US Military Seizure Rattles Markets

The trouble started Saturday when Iran said it would shut down key oil shipping lanes through the Strait of Hormuz.

Bitcoin, which had climbed to $78,300 on Coinbase late Friday — its strongest price since early February — quickly gave up those gains. By Saturday and into early Sunday, it had slid to between $75,000 and $76,000.

Then came Sunday night. The US military opened fire on an Iranian cargo ship and later took control of it, saying the vessel had attempted to break through a US blockade of Iranian ports.

Tehran called the move a ceasefire violation and vowed retaliation. Iran also pulled out of peace talks scheduled for Monday in Islamabad, Pakistan.

Bitcoin dropped sharply. It briefly fell under $74,000.

Stock Futures And Oil Feel The Pressure Too

Crypto was not the only market caught off guard. S&P 500 futures fell 0.78% Sunday night. Nasdaq-100 futures dropped 0.6%. Dow Jones futures lost roughly 450 points, or about 0.89%.

Oil moved in the opposite direction. With Iran threatening to close the Strait of Hormuz — one of the world’s most critical shipping corridors for crude — oil futures surged more than 4.5%, pushing above $95 a barrel.Ceasefire Expiry Puts Wednesday In Focus

The coming days will likely determine where things head next. With Iran rejecting new negotiations and the ceasefire window closing fast, traders are watching closely.

The brief rally Bitcoin enjoyed last week, built partly on hopes that US-Iran tensions were cooling, has been wiped out.

At last check, Bitcoin was trading near $75,098.

Featured image from Meta, chart from TradingView
source: https://www.tradingview.com/news/newsbtc:cdd477d72094b:0-bitcoin-pulls-back-below-74k-as-iran-tensions-rise-again/