Over the weekend, Bitcoin unexpectedly fell below $100,000, signaling alarm for investors and causing sharp movements in financial markets.
Geopolitics and the Energy Market
Bitcoin has dropped to its lowest level since May, primarily influenced by geopolitical tensions stemming from the potential closure of the Hormuz Strait and increasing risks in the Middle East. The U.S. has initiated military actions, leading to a strengthened demand for safe-haven assets.
Oil Price Situation
The Hormuz Strait, strategically important for global oil trade, may face closures. Given that around 20% of global oil shipments pass through this channel, any potential closure could lead to a spike in prices. Reports regarding a possible closure have intensified expectations for rising oil prices, affecting volatility in energy markets.
Decline of Cryptocurrencies and Consequences
The cryptocurrency market has also been affected by these developments. Following Bitcoin's sharp decline, major altcoins such as XRP, Solana, and Ethereum have also trended downward. XRP hit its lowest point since April, while Ethereum revisited early May levels. This volatility underscores how Bitcoin and other crypto assets are susceptible to fluctuations in high-risk environments.
The rise in geopolitical risks adversely affects financial markets, particularly in the energy and cryptocurrency sectors. Investors should be alert to changes and prepare for potential abrupt fluctuations in the face of growing uncertainty.
