Crypto markets are stuck in a holding pattern as geopolitical tensions in the Middle East cloud an otherwise improving macro backdrop, according to crypto asset manager Grayscale.

“The war in Iran overshadowed virtually all other market developments in March,” the Grayscale research team said in a Wednesday report.

Before the conflict escalated, global growth appeared to be strengthening and central banks were leaning toward rate cuts. That outlook has been disrupted by a sharp rise in oil prices, which has fueled inflation concerns and pushed interest rate expectations higher, weighing on risk assets and keeping investors on the sidelines, the report said.

Since the outbreak of the Middle East conflict, crypto markets have been volatile…