Bitcoin's upward movement didn't last until Monday. I noticed that BTC dropped about 1% and is trading around 74,000, reversing most of its Sunday rally. It seems the market has digested the news about the conflict between the US and Iran, and all cryptocurrencies are heading down along with Bitcoin.

The main reason is clear — oil has surged sharply by 6%, global stock indices are falling, and this puts pressure on all risk assets. Ether fell by 2.5% to 2.32K, Solana lost nearly 3% and is trading around $83, XRP decreased to 1.36. Over the week, Solana dropped by 8%, the biggest decline among top coins. Gold rose to 5350 per ounce, which also indicates that investors are seeking safe assets.

Liquidity in the cryptocurrency market is clearly tightening due to inflation concerns. Rising energy prices may delay the Federal Reserve's rate cuts, which is bad news for risk assets. The Strait of Hormuz, through which a fifth of the world's oil passes, is almost closed, and no one knows how long this will last.

Although some traders believe that further declines could be limited. The argument is that Iran has been cut off from global markets for a long time, so its oil isn't as critical. OPEC and the US could increase supplies and stabilize prices. But all this depends on whether the strait opens and how long the current conflict lasts. For now, these questions hang in the air, and cryptocurrencies are trading as usual risk assets in an already risky world. We watch further.