Profit-taking, MidEast hostilities drag crypto lower after bullish week

The crypto market pulled back during Asian and European hours on Monday, with Bitcoin (BTC) falling to $63,100 from above $64,300 at the weekly close. That is a decline of about 1%. Steeper losses hit the altcoin market. Lighter (LIT) led the downside, sliding 8% in its first major selloff since rallying more than 200% over the past two months.

The exit from riskier assets extended to equity markets. South Korea's Kospi index lost 9.2%, with SK Hynix, the memory-chip maker that went public in the U.S. on Friday, slumping 15%. Japan's Nikkei and China's SSE both fell more than 2%. U.S. equities are also indicated to open lower, with Nasdaq 100 futures and S&P 500 futures losing 0.9% and 0.25% since midnight.

The drop followed news of airstrikes between Iran and the U.S. over control of the Strait of Hormuz. Both nations exchanged airstrikes over the weekend, escalating Middle East hostilities. The Strait of Hormuz is a critical passage for global oil shipments, and the airstrikes raised concerns about supply disruptions.

The decline also came after a week of gains for digital assets. Bitcoin had climbed above $64,300 by the weekly close, its highest level in two weeks. Some market participants cited profit-taking as a factor in Monday's selloff.

The broader crypto market had risen through the week, recovering from recent losses. U.S. equity futures point to a lower open, with the Nasdaq 100 down 0.9% and the S&P 500 down 0.25% since midnight UTC.