Middle East Conflict Triggers Market Volatility as Bitcoin, Stocks Slide and Oil Surges

Global financial markets are facing renewed volatility as the Middle East conflict enters its fourth day, prompting a clear shift toward risk-off sentiment in Tuesday’s pre-market trading. Investors are rotating out of risk assets such as cryptocurrencies and growth stocks while seeking safety in the US dollar and energy markets.

Bitcoin price action reflects the broader uncertainty. The leading cryptocurrency is down 3% over the past 24 hours, falling below $67,000 after briefly reclaiming $70,000 on Monday. The pullback has weighed heavily on crypto-related stocks, amplifying losses across the sector. Strategy (MSTR), the largest publicly traded holder of Bitcoin, is down 2%, while Coinbase (COIN) has dropped 5%. Galaxy Digital has fallen 3%, and AI-focused Bitcoin miners including IREN and Cipher Digital (CIFR) are each down roughly 4%, tracking BTC’s decline.

US equities are also under pressure. The Invesco QQQ Trust (QQQ), which closed slightly higher to start the week, is now down about 2% in pre-market trading as investors reduce exposure to technology and growth stocks.

Commodities are sending mixed signals. Gold and silver prices are both lower despite geopolitical tensions, with gold holding above $5,300 per ounce and silver sliding 4% to around $85 per ounce. In contrast, oil prices are climbing sharply. WTI crude is trading above $74 per barrel, up 5% in the past 24 hours and nearing Sunday’s futures highs above $75, reflecting concerns over potential supply disruptions.

Meanwhile, the US dollar index (DXY) has strengthened significantly, rising above 99 for the first time since January 20. Treasury yields are also edging higher, with the 10-year yield pushing toward 4.1%, signaling persistent rate pressure as investors brace for continued market uncertainty.