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Crypto steadies as Iran-U.S. pause hits oil and lifts risk assets

Brent crude fell more than 7% to about $87 a barrel after the Strait of Hormuz strike pause, and bitcoin held near $65,000 while DeFi tokens surged.

Reported · Written up by our desk · Market Structure

CoinDesk reports that markets steadied in crypto after the U.S. and Iran paused strikes over the Strait of Hormuz, a shift that sent Brent crude tumbling more than 7% to around $87 per barrel. The easing of hostilities reduced inflation worries that had weighed on risk assets in recent weeks, with the Fed viewed as less likely to move aggressively this week.

CoinDesk says the Fed meets this week to decide whether to raise rates for the first time in three years, as inflation nears 4.1%. According to CME Group’s FedWatch tool, the probability of an increase was trimmed to 30.5% from 37.4% at Friday’s close.

Within crypto, CoinDesk reports that DeFi tokens led the rebound, with AAVE up 9%, LDO up 9.4%, and ONDO up about 7%. PUMP also jumped 12.2%, pushing its market capitalization toward $800 million from $570 million two weeks earlier.

CoinDesk adds that bitcoin was around $65,166, with ether rising 0.5% to $1,963 and nearing the $2,000 level for the first time since early June. The CoinDesk 20 Index (CD20) was up 1.6% over 24 hours, with index futures and precious metals also gaining as inflation fears unwound.

Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%|Bitcoin $65,139.96 ▼0.3%

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