Bitcoin was falling Monday as significant gaps emerged between the U.S. and Iran ahead of potential peace talks. Crypto-related stocks were also falling.

The world's largest cryptocurrency was down 0.8% to $75,386 over the past 24 hours, according to CoinDesk. Ethereum dropped 1.5% while popular altcoin XRP dipped 1.2%.

The discrepancy is down to timing more than anything else. When the stock market closed Friday Bitcoin had surged to almost $78,000 amid signs of easing tensions across the Middle East. That boosted the share price of Strategy — the largest corporate holder of Bitcoin — by 12%.

But events over the weekend have hit the price of cryptocurrencies, and the stocks are just catching up now.

Strategy was down 2.2% in early trading Monday, while online trading platform Robinhood fell by 1.6% and crypto exchange Coinbase was down 1.8%.

In the early phases of the war, cryptocurrencies appeared to act like hedges against geopolitical uncertainty. But after nearly two months of fighting, digital asset prices have been following broader market moves.

While new talks between Washington and Tehran could potentially to begin later Monday, President Donald Trump accused Iran Sunday of breaching an initial cease-fire by firing on ships in the Strait of Hormuz — which it had briefly reopened — according to The Wall Street Journal.

Trump also told Fox News on Sunday that Iran has to sign a deal or "the whole country is getting blown up," Barron's reported . Elsewhere, in a social media post, Trump threatened that "every single power plant, and every single bridge" in Iran would be knocked out.

"This backdrop has meant that markets this morning have reversed a good chunk of Friday's moves," said Deutsche Bank strategist Jim Reid. Early Monday, the S&P 500 and Dow Jones indexes were down by 0.4% and 0.2%, respectively.

Other risk assets, like cryptocurrencies, have taken a hit too. In the near-term, geopolitical tensions will probably cap any crypto price breakouts — up or down.

Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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