The recent escalation of tensions between the United States and Iran has sent shockwaves through the global financial markets. On Monday, the crypto market cap dropped below $2.5 trillion as a result of the U.S. imposing a maritime blockade on Iranian traffic through the Strait of Hormuz.
Oil prices surged above $100 due to fears that rising energy costs and renewed inflation could hurt the global economy. The increased uncertainty has led investors to move towards cash, causing traditional safe-haven assets like gold and silver to fall slightly.
The market's performance is expected to be influenced by the upcoming U.S. PPI data release on Tuesday. A stronger-than-expected reading may embolden the Federal Reserve to maintain high interest rates for longer, placing further downward pressure on crypto prices.