Middle East Tensions and Rate Hike Jitters Weigh on Bitcoin

Bitcoin held steady at $77,760.7 on Monday as markets digested worsening tensions in the Middle East and growing expectations of a Federal Reserve interest rate hike this week.

The world's largest cryptocurrency rose 0.8% from last week's decline, but broader crypto prices remained rangebound amid a swarm of uncertainties for the sector.

Investors were spooked by a renewed surge in oil prices due to worsening conditions in the Middle East, with Yemen's Iran-aligned Houthis attacking Saudi Arabia and shipping in the Bal al-Mandab strait. This development could cut off another 4% to 5% of global supply.

The anticipation of a potential vote on the Clarity Act also kept crypto traders on the sidelines, as policymakers, industry insiders, and banking lobbyists clashed over the act's treatment of stablecoin yields and its provision for setting up an ethical standard that could limit officials from investing in crypto.