Bitcoin Price Plummets Below 99,000 USD After Iran's Closure of Hormuz Strait
On Sunday, Bitcoin price fell below the 99,000 USD threshold, reflecting the impact of Iran's decision to close the Hormuz Strait, cutting off one of the world's most strategic oil transportation routes. This action occurred after multiple US airstrikes targeting Iran's nuclear facilities, escalating regional tensions.
The immediate effect was clear. Ethereum dropped 10%, trading at 2,180 USD, while XRP plunged 8% to 1.93 USD. The cryptocurrency market responded with a sudden surge in liquidation volume and prolonged instability.
Strategic Role of Hormuz Strait in Global Oil Market
The Hormuz Strait, located between Iran and Oman, is responsible for transporting approximately 25% of global oil exports. Although the Iranian parliament does not control the strait, military and security forces play a crucial role in the final decision. The threat was enough to shock global markets. Energy companies like ClearView Energy Partners warn that oil prices could exceed 77.01 USD per barrel this weekend, unless the US and its allies take appropriate diplomatic action.
Cryptocurrency Market Storm as Iran Escalates Oil Crisis
According to Reuters, the decision to close the Hormuz Strait stemmed from the US attack on Iran's nuclear facilities, a strong reaction in the Iran-Israel crackdown. The cryptocurrency market witnessed significant disruption in the past 24 hours. Bitcoin, with over 47.7 billion USD in trading volume, dropped 6.3% this week, with a market capitalization of 1.96 trillion USD.
Ethereum, in a challenging phase, decreased 14.3% in 7 days, with daily trading volume reaching 29.5 billion USD. XRP, affected by political factors and legal constraints, fell 10.7% this week, with a market capitalization of 114 billion USD. Solana was not spared, dropping 6.4% to 128.65 USD, resulting in nearly 15% weekly losses. Meanwhile, BNB declined 3.9% to 608 USD. Tether maintained a 1.00 USD rate, with over 76 billion USD volume in 24 hours.
Although no actual action has been taken to block the transportation route, analysts are not overlooking the situation. Eurasia Group predicts that Iran may not completely close the Hormuz Strait but will intensify disruptions to oil tankers. This instability is the primary cause of the oil panic, and this crisis chain has triggered a crypto panic.
Reactions from Financial Experts and Crypto Traders
Arthur Hayes, an economist and crypto expert, stated: "Hear that? That's the sound of money printers spinning to accomplish national missions. This weakness will pass, and Bitcoin will affirm its position as a safe haven."
US Government Warns and Responds to War Risk
Although Iran has not taken official action, the Revolutionary Guard still holds the final decision-making power. Conflict in the region could escalate into armed confrontation, pushing the cryptocurrency market into instability. Experts believe that closing the Hormuz Strait would be a clear declaration of war against Gulf countries and the US, and Iran seems reluctant to escalate at this moment.
Washington has deployed significant military forces to the region, and any Iranian action could lead to a military response. The cryptocurrency market has been severely impacted. When energy routes are threatened, the value of digital currencies like Bitcoin, Ethereum, and XRP no longer exists independently but is closely linked to global political events.
In an interview, US Vice President JD Vance emphasized: "The Hormuz Strait is Iran's economic lifeline. If they want to destroy their own economy and cause global disruption, that is their decision."
Ethereum experienced its most significant drop this quarter, while Bitcoin lost the 100,000 USD mark, erasing many weeks of accumulated achievements. XRP, with its unstable legal situation, lost 6% in a day and 10.7% in a week. Market capitalizations have disappeared, and fear is evident among traders through sudden liquidation surges.
The only certainty at this moment is instability. Crypto, oil, and global politics are intertwined. Iran has just turned off the lights, leaving an unclear picture for the global market.
