Bitcoin Slips as Oil Surges on Fading Hopes for Hormuz Reopening

Bitcoin fell below $64,500 Monday following Wall Street’s open, retreating from weekend gains as renewed uncertainty over the Strait of Hormuz rattled markets.

The decline mirrored early weakness in US stocks after an Iranian official stated there was no military solution to reopening the critical oil route, sending crude oil prices up nearly 5% on the day. Equities later recovered some ground, though they remained below recent highs.

Yen Weakness Adds to Market Jitters

Attention also turned to the Japanese yen, which continued sliding toward historic lows against the dollar despite an earlier rare joint intervention by Japan and the United States. Economists noted the currency’s continued weakness signals that stronger policy action may be needed to stabilize it, with the exchange rate approaching a closely watched psychological threshold.

Separately, hedge funds were found to have flipped to a net long position in Bitcoin futures for the first time in years, a shift analysts called rare and indicative of growing institutional confidence, even as broader market momentum remains described as tentative amid subdued exchange trading activity.