- Bitcoin and Ethereum were up only slightly on Saturday.
- Traders are waiting to see what will happen with the Iran war.
- US President Donald Trump threatened Iran on the weekend.
Crypto prices were largely flat on Saturday as traders waited to see what the latest developments in the Middle East would be after US President Donald Trump gave Iran an ultimatum.
Bitcoin was up nearly 1% over a 24-hour period Saturday afternoon in New York, trading hands for $67,404, according to CoinGecko. Ethereum was up 1% over the same period, trading for $2,073.
“Time is running out — 48 hours before all Hell will reign down on them,” President Trump wrote on his social media platform Truth Social on Saturday in a warning to Iran to open the Strait of Hormuz.
“Glory be to GOD!”
Iran has until Monday to open the strategic waterway, according to Trump, or the US will intensify attacks on the country. A US fighter jet was downed Friday; analysts have said that an escalation could put downward pressure on crypto prices.
Supply shock
Bitcoin has benefited — albeit slightly — from war in Iran, rising at one point higher than equities and gold.
The leading coin is now up 6% since Israel and the US started strikes on Iran on February 28.
Still, analysts say that more war could lead to higher oil prices and a possible recession — which wouldn’t help crypto markets.
“If the Middle East conflict persists, inflationary pressure via energy is likely to continue, reinforcing a more hawkish Fed stance and limiting sustained upside,” Sebastián Serrano, the CEO of Argentinian crypto exchange Ripio, said in a written message to DL News.
Hello! This chart will be available in a few moments
He added that “clear signs of relief, especially a de-escalation of the conflict,” could help crypto.
Coinbase’s Global Head of Investment Research, David Duong, wrote in a LinkedIn post that “a broader US escalation would raise the probability of a supply shock in crude and tighten financial conditions, as the odds of a global recession rise.”
A flat week
Bitcoin has had a dull week, and is largely trading flat over a seven-day period. This comes despite an impressive jobs report Friday that showed that the unemployment rate unexpectedly fell.
Bitcoin didn’t budge on the news of the report.
US investors threw just 22 million at spot Bitcoin ETFs this week. Ethereum funds, which have suffered more than their Bitcoin counterparts so far this year, saw net outflows, according to data from Farside Investors.
Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.
