The crisis in US-Iran relations has led to a sharp decline in cryptocurrencies, particularly Bitcoin and Ethereum. The threat to close the Strait of Hormuz, a key oil transportation route, has exacerbated market instability.
Impact on the Cryptocurrency Market
Bitcoin dropped below $99,000, marking a significant decline. Ethereum decreased by 10%, falling to $2,180, while XRP slid by 8%, reaching $1.93. In the last 24 hours, Bitcoin saw $47.7 billion in trading volume. As a result of market instability, analysts are witnessing sharp fluctuations in volumes and liquidations.
Geopolitical Situation Around the Strait of Hormuz
The Strait of Hormuz, which handles about 25% of global oil exports, became a focal point after the Iranian parliament expressed support for blocking this key transport route. This decision followed US military actions against Iranian nuclear facilities. While the parliament does not have direct control over the strait, the mere threat of such action has caused significant volatility in oil markets.
Reactions and Future Prospects
Analysts are warning of escalating tensions in the region. Economist Arthur Hayes noted that amid uncertainty and panic related to oil, the risks for cryptocurrencies are increasing. Despite warnings of a possible closure, nothing indicates that this step will be taken by Iran; however, the consequences are already being felt in the markets.
The cryptocurrency market continues to face threats from geopolitical instability. Investors should closely monitor developments, as the links between oil routes and the cryptocurrency market become increasingly evident.
