Crypto steadies as Iran-U.S. pause sends oil tumbling, lifts risk assets
Brent crude plunged 7% after the U.S. and Iran paused Strait of Hormuz strikes, lifting equities and DeFi tokens while bitcoin held near $65,000 ahead of a pivotal Fed decision Wednesday.
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Summary
- The U.S. and Iran paused strikes over the Strait of Hormuz, sending Brent crude tumbling more than 7% to around $87, easing the inflation fears that have weighed on risk assets for weeks.
- The Fed meets this week on whether to raise rates for the first time in three years as inflation nears 4.1%, though the pause in hostilities trimmed the probability of an increase to 30.5% from 37.4% at Friday’s close, according to CME Group’s FedWatch tool.
- DeFi tokens led the crypto recovery with AAVE rising 9%, LDO 9.39% and ONDO 7%. PUMP surged 12.24% to push its market cap toward $800 million from $570 million just two weeks ago.
