Bitcoin is continuing to outperform traditional markets in August, remaining relatively stable despite renewed geopolitical tensions that have sent oil prices higher.

The latest market shock came after the U.S. attacked an Iranian island in the Strait of Hormuz, followed by retaliation from Iran. The strategic waterway is a major corridor for global oil shipments and has faced disruptions since the conflict began roughly six months ago.

Oil prices reacted quickly. WTI crude futures climbed nearly 2% to $85.10 per barrel, while Brent crude increased 1.9% to $92.39, according to TradingView.

Other major assets moved lower. Gold slipped 0.8% to $4,418 an ounce, while Nasdaq futures declined 0.5% amid losses across Asian stock markets.

Bitcoin remained largely unaffected during Asian trading hours. BTC traded around $77,580, little changed from its midnight UTC level, according to CoinDesk.

The cryptocurrency has climbed approximately 23% in August, outperforming gold’s 9% gain and the Nasdaq’s 4% advance. Among other major tokens, XRP fell 0.8% and Solana declined 0.6%.

ETF Flows Help Support BTC

Bitcoin’s relative resilience has coincided with strong demand for spot bitcoin ETFs and expectations that the Federal Reserve could respond more aggressively following the Treasury’s bond-buyback initiative.

However, the outlook for interest rates became more hawkish after Fed Chair Kevin Warsh spoke at the Jackson Hole Symposium on Friday.

Warsh said inflation has not yet been sufficiently contained and argued that financial conditions remain less restrictive than necessary. He also said recent improvements in inflation have not yet demonstrated a meaningful reduction in underlying price pressures.

The remarks led investors to adjust their rate expectations. MUFG FX strategist Lloyd Chan said markets were assigning a 58% probability to a September rate hike and pricing in around 1.5 hikes by the end of the year.

Key Levels in Focus

The combination of geopolitical uncertainty and changing Fed expectations is prompting some crypto traders to take a more cautious approach.

Vikram Subbaraj, CEO of India-based Giottus, recommended limiting leverage and using smaller positions with staggered entries while macro risks remain elevated.

He identified $77,000 as an important support level for bitcoin, with resistance between $79,400 and $80,800. That range could become particularly important ahead of the U.S. jobs report due September 4.

Bitcoin’s ability to remain steady while oil rises and equities weaken has reinforced its strong relative performance this month. However, upcoming economic data and further changes in interest-rate expectations could determine whether BTC can extend its August lead.