Bitcoin holds steady after U.S. strikes on Iran, up 24% in August

Bitcoin held near $78,000 on August 31 as U.S. military strikes on Iran sent oil prices above $90 a barrel and pushed global stock markets lower. Despite the broader risk-off sentiment, the cryptocurrency remained stable and is on track for a 24% gain in August, its strongest monthly performance since November 2024.

Market reaction to geopolitical tensions

While oil prices surged and stock markets showed mixed reactions, bitcoin showed little movement. Brent crude jumped after U.S. forces targeted Iranian rocket launchers, but bitcoin’s price stayed flat. The CoinDesk 20 index, which tracks the broader crypto market, fell 0.75% over the past 24 hours, while bitcoin gained 0.5%.

Gold prices fell to $4,440 per ounce, and concerns about inflation rose following a hawkish speech by Federal Reserve Chair Kevin Warsh, increasing the likelihood of a September interest rate hike to 58%.

Key market movements

• Bitcoin is up over 24% in August, the best monthly gain since November 2024.
• Oil prices rose above $90 a barrel after U.S. strikes on Iran.
• Total crypto liquidations reached $431 million, with ether leading at $130 million.
• Monero (XMR) saw a 12% price increase but showed signs of an overheated rally, with high funding rates.
• Uniswap (UNI) rose 6.9% amid strong tokenized stock trading activity on Robinhood Chain.

Derivatives and trading activity

Crypto derivatives data showed mixed signals. Bitcoin and ether open interest remained moderate, while monero’s futures open interest rose 15%, indicating a buildup of long positions. However, high funding rates for monero suggest potential overcrowding, which could lead to a sharp price drop if the rally stalls.

Uniswap’s open interest also increased, but without the same overheating signs as monero. Bitcoin’s volatility index dropped below 40%, suggesting calmer market conditions. Options trading showed some caution, with high demand for bitcoin puts at lower strike prices, a strategy used to hedge against potential price declines.

Standout performers

Uniswap (UNI) was the top performer among major tokens, rising 6.9% as on-chain data showed over $1.5 billion in tokenized stock trades on Robinhood Chain. PancakeSwap (CAKE) also gained 6.9%, while Dash (DASH) and Bitcoin Cash (BCH) saw smaller increases. Prom (PROM) dropped 18% as traders took profits after a recent rally.

Sources

• CoinDesk