Bitcoin remained above $78,000 on Monday despite fresh U.S. strikes on Iran, higher oil prices and losses across major stock indexes. The cryptocurrency traded near $78,623, down 0.7% over 24 hours, after falling to an intraday low of about $77,162, according to CoinGecko.
Despite the daily decline, Bitcoin is on track to finish August more than 24% higher. That would make it the cryptocurrency’s strongest monthly performance since 2017.
Bitcoin holds steady as geopolitical risks rise
The weekend saw the first exchange of U.S.-Iran strikes since late July, renewing concerns about shipping through the Strait of Hormuz and driving crude oil prices higher.
West Texas Intermediate futures rose 2.6% to approximately $85.60 a barrel. U.S. equities moved lower, with the S&P 500 down 0.5% at around 7,673 and the Nasdaq Composite falling 0.4% to about 26,289.
Iliya Kalchev, an analyst at Nexo Dispatch, said Bitcoin’s resilience was more significant than its August gain. Kalchev noted that a hawkish Federal Reserve and an active geopolitical escalation rarely affect risk assets in the same week, making Bitcoin’s ability to hold its ground against both pressures a notable signal.
Kalchev also pointed to derivatives data indicating that traders may be repositioning rather than adding significant new capital. Twenty-four-hour trading volume more than doubled to $183 billion, while open interest remained broadly unchanged.
Fed policy weighs on crypto markets
Bitcoin also faced pressure from Fed Chair Kevin Warsh’s hawkish address at Jackson Hole. Expectations for a September rate hike climbed to approximately 58%, compared with about 35% before his remarks.
Gold also declined, slipping to nearly $4,440 as the stronger interest-rate outlook outweighed its typical safe-haven appeal.
Bitcoin’s August rally lost momentum late last week following Warsh’s comments. Spot Bitcoin ETFs ended a nine-day streak of inflows, while Ethereum funds continued to attract investor money.
Ethereum traded near $2,448 on Monday, registering a modest decline while remaining on course for an August gain approaching 30%.
Market attention now shifts to Friday’s U.S. jobs report and the August consumer price index reading scheduled for September 11.
