Monday was a tough day in the crypto markets. Bitcoin dropped to $73,630 after a weekend rally that didn’t hold—that’s a 1.2% drop over 24 hours. It seems that traditional markets opened on Monday, and all the attention shifted to the conflict between VS and Iran. Crypto traded accordingly, and stock prices worldwide fell back.

I looked at the broader market and saw that Ether declined by 2.6% to $2,310, Solana lost 3.5% and came in at $82.81, and XRP fell to $1.35. Over a one-week period, Solana was the biggest loser with about a 2% loss. Meanwhile, oil shot up—Brent rose by 6.4%, the biggest jump since 2022, because the Straat van Hormuz is effectively closed. That’s driving inflation fears.

What’s interesting is how all of this ties together. Higher energy prices feed inflation expectations, which could delay Fed rate cuts. That puts pressure on risky assets like crypto. Asian stock markets fell by 1.4%, and U.S. futures fell by 0.7%. Gold rose to $5,350 per ounce—a classic flight-to-safety move.

But some traders say the downside risk may be limited. Iran has long been isolated from global financial markets, and OPEC plus the VS can supply additional production. The question is whether the Straat van Hormuz reopens and how long this conflict lasts. Until those questions are answered, we trade crypto as pure risk assets in a world that has just become riskier. Stock prices will likely continue to react to every new update from the Middle East.