Bitcoin (BTC) Outperforms Traditional Assets as Markets Enter Fourth Week of Decline

Quick Overview

• Bitcoin maintains support above $66,000, experiencing just a 6% weekly decline compared to steeper losses across traditional assets
• Gold faces unprecedented pressure with nine consecutive days of decline, shedding approximately 18% from recent peak levels
• Wall Street futures tumbled Monday morning, marking the Dow’s most extended losing period since 2023
• President Trump delivered a 48-hour deadline to Iran regarding Strait of Hormuz access, warning of potential strikes on energy facilities
• Goldman Sachs revised oil price forecasts upward, characterizing the Hormuz situation as an unprecedented crude supply disruption

As global financial markets enter their fourth consecutive week of downward pressure amid escalating US-Israeli tensions with Iran, Bitcoin demonstrates remarkable resilience compared to traditional asset classes.

During Monday’s Asian trading hours, Bitcoin was changing hands at $68,316, registering a 1.5% gain over the previous 24 hours while still posting a 6% weekly decline. Ethereum climbed 2.7% to reach $2,059. Among major digital currencies, Dogecoin recorded the weakest performance, dropping 7.4% over the week to $0.09.

Tron stood alone among leading cryptocurrencies with positive weekly performance, advancing 3.8%.

Wall Street index futures indicated further downside pressure in early Monday trading. Dow Jones futures retreated approximately 0.4%, while S&P 500 futures slipped 0.5%, and Nasdaq 100 futures decreased 0.6%.

During the week concluded Friday, both the Dow Jones and Nasdaq registered approximately 2% declines, while the S&P 500 fell 1.5%. The Dow Jones Industrial Average has now recorded four consecutive weekly losses, representing its most prolonged downturn since 2023.

Gold continued its stunning selloff Monday, marking nine straight sessions of losses as prices fell to approximately $4,360. The precious metal has now declined roughly 18% from its recent peak, an unusual move for an asset traditionally viewed as a safe haven during periods of geopolitical uncertainty.

Factors Behind Market Weakness

The Iranian conflict has now entered its fourth week. President Trump indicated over the weekend his opposition to a ceasefire arrangement and issued a 48-hour deadline Saturday, warning of strikes against Iranian energy infrastructure unless the Strait of Hormuz is reopened to shipping.

Tehran responded by warning that any military action would trigger permanent closure of the Strait along with retaliatory attacks on American and Israeli energy installations throughout the region.

Brent crude advanced to approximately $113 per barrel, now showing gains exceeding 70% for the calendar year. Goldman Sachs elevated its annual Brent projection to $85 from $77 and boosted its WTI estimate to $79 from $72. The investment bank characterized the Hormuz disruption as the most significant supply shock ever experienced in global crude markets.

Treasury yields advanced as extended conflict duration heightened inflation worries, diminishing market expectations for central bank interest rate reductions.

Forward-Looking Analysis

Asian equity markets declined for a third consecutive session and are nearing correction territory. European and S&P futures suggested additional weakness ahead.

Friday will deliver fresh readings on the University of Michigan consumer sentiment index, accompanied by near-term and long-term inflation expectation data. The S&P Global Flash US PMI report is scheduled for Tuesday release.

Blume noted that Two Prime has positioned portfolios for elevated funding and futures rates in upcoming weeks, indicating his view that Bitcoin offers more upside potential than current market pricing reflects.

President Trump’s 48-hour deadline reaches its conclusion Monday evening.

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