Bitcoin Pulls Back Below $76K As Iran Tensions Rise Again

The Crypto Fear & Greed Index crept up two points to 29 out of 100 on Monday — its highest reading since late January — but that number still signals fear among Bitcoin investors.

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.

Source: Alternative.me

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.

BTCUSD trading at $75,098 on the 24-hour chart: TradingView

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.

JUST IN: Bitcoin falls under $74,000 after Iran rejects second round of peace talks with the US.