Wintermute: Middle East Tensions Escalate Driving Oil Prices Surge, Crypto Assets Outperform Against the Trend

CycleProphet · 2026-03-10T09:46:37+00:00

The Middle East conflict has led to rising energy prices, and the market generally declined. Crypto assets performed well, with Bitcoin showing relative resilience. Analysis indicates that reduced leverage in the crypto market helps alleviate selling pressure. Next week's Federal Reserve meeting will be a key focus.

CycleProphet

2026-03-10 09:46:37

Abstract generation in progress

Deep Tide TechFlow News, March 10th, Wintermute released a market report stating that the Middle East conflict has entered its second week. Brent crude oil surged 26% this week, and energy inflation pressures have pushed the market’s expectation of a single rate cut by the Federal Reserve in 2026. Major risk assets declined across the board: S&P 500 -2.0%, Nasdaq -1.2%, Russell 2000 -4.0%, and gold also fell due to deleveraging.

Cryptocurrencies became the most eye-catching asset class this week, with BTC +0.4%, ETH flat, and altcoins -0.4%, showing signs of loosening their high correlation with stocks. Wintermute’s analysis suggests that the current crypto market leverage is about $60 billion, only half of its peak, and the relatively small forced liquidation pressure is a key reason for outperforming. Bitcoin’s resilience in risk-averse environments has also brought the narrative of inflation hedging back into focus.

Next week’s FOMC meeting will be a key catalyst. If the Federal Reserve signals a hawkish stance or if the situation further escalates, it will be bearish for the markets.

BTC3.1%

ETH2.56%

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