The Iranian Parliament has approved a potential closure of the Strait of Hormuz, leading to significant changes in global markets, including cryptocurrencies.
Iranian Vote on Hormuz Closure
The Iranian Parliament voted to close the Strait of Hormuz; however, the final decision must be confirmed by the Supreme National Security Council. This move comes in response to recent US airstrikes on Iranian sites. "However, the final authority on the matter rests with Iran’s Supreme National Security Council, which must approve the closure before it is enacted."
Crypto Market Reaction
The crypto market reacted sharply to the news, with Bitcoin dropping below $99,000 and nearly $1 billion in liquidations occurring within 24 hours. This reflects significant leveraged position closures due to heightened risk. Market participants remain cautious amid the unfolding geopolitical tensions.
Historical Trends and Current Shifts
In past geopolitical tensions, the potential closure of the Strait of Hormuz also resulted in sharp fluctuations in oil prices, mirroring current market reactions. According to CoinMarketCap, Bitcoin's price currently stands at $101,203.13 with a market cap of $2.01 trillion and a 24-hour trading volume of $63.01 billion.
The situation surrounding the Hormuz Strait closure will impact global energy and crypto markets. Market participants continue to monitor developments and potential investment risks.
