Grayscale: Investors on sidelines amid soaring oil prices, Iran risk

Grayscale noted in a recent report that cryptocurrency investors are taking a wait-and-see approach due to geopolitical risks in the Middle East, CoinDesk reported. The report stated that the conflict with Iran effectively dominated market trends in March, with inflation concerns from soaring oil prices and expectations of rising interest rates acting as risks for crypto and other risk assets. As a result, the crypto market has remained range-bound, lacking clear direction amid heightened volatility. Bitcoin initially fell to the mid-$60,000s at the start of the conflict before rebounding to the low-$70,000s. However, it is now facing renewed selling pressure as the Middle East risk becomes prolonged. From a long-term perspective, however, positive factors remain. The report explained that continued inflows into spot BTC ETFs and expanding positions in the futures market are gradually easing risk-off sentiment.