Bitcoin and Gold Outlook: BTC and XAU remain pressured amid sticky US-Iran tensions

• Bitcoin’s sell-off extends below $79,000 as cryptocurrencies broadly correct on Monday.
• Gold falls for a second consecutive day, testing support at $4,400 as geopolitical tensions stay high.
• US and Iran exchanged strikes over the weekend, with Tehran threatening intense retaliation.

Bitcoin (BTC) is correcting below $79,000 on Monday, mirroring the broader cryptocurrency market’s lethargic, bearish-shifting outlook. The Crypto King was rejected near $81,500 last Thursday, suggesting investor exhaustion.

Meanwhile, Gold (XAU/USD) remains pressed against the near-term $4,400 support, as focus shifts to the upcoming United States (US) Consumer Price Index (CPI) data on Friday. Investors are currently pricing in 60% odds that the Federal Reserve (Fed) will adopt a stricter monetary policy, raising interest rates in the 3.75%-4.00% range.

US-Iran exchange strikes, weighing on Bitcoin and Gold

Over the weekend, the US military struck three Iran-linked oil tankers in the Gulf of Oman, reportedly disabling two and destroying the third. In retaliation, Iran targeted three US-affiliated vessels and three additional oil tankers attempting to transit the Strait of Hormuz.

Tehran also announced plans to declare a restricted zone near the strait and to unveil a new shipping route with Oman in the coming days. The exclusion zone will be used to stop shipping vessels attempting to transit through the strait without Iranian permission.