Crypto Market Pulls Back Amid US-Iran Tensions and Energy Market Strain
The cryptocurrency market is experiencing a pullback as risks and barriers converge. Bitcoin (BTC) has moved towards short-term support around $64,000 but remains below its key moving averages. Ethereum (ETH) trades near $1,900 within a tight band defined by its 50-day and 100-day EMAs. Ripple's XRP lingers under $1.00, with price action capped by the 50-day, 100-day, and 200-day EMAs and a bearish momentum profile.
The weaker tone across digital assets follows the lapse of the 60-day Memorandum of Understanding (MoU) between the United States and Iran. Tensions between the two countries remain elevated, with no clear sign that the war is close to ending. The Strait of Hormuz, a key route for global energy flows and trade, is described as effectively shut.
US President Donald Trump has delivered firm warnings against interference from Oman in efforts to reopen the waterway. However, Iran's Foreign Ministry spokesperson stated on Monday that Tehran has reached an initial deal with Oman on prospective shipping corridors through the strait. Oil prices are holding above $84, reflecting persistent uncertainty around the timing and prospects for reopening the Strait of Hormuz.
Despite geopolitical risks, crypto market sentiment has improved, with the Fear & Greed Index rising to 41 in the Fear zone from 31 the day before. This move suggests that ongoing US-Iran tensions are not exerting heavy pressure on risk appetite. Bitcoin remains contained below $65,000, but buying interest continues to emerge between $63,000 and $64,000.