Bitcoin's price plummets below $99,000 after Iran's closure of the Strait of Hormuz
On Sunday, Bitcoin's price fell below the threshold of $99,000, reflecting the impact of Iran's decision to close the Strait of Hormuz, cutting off one of the world's most strategic oil transport routes. This action followed multiple US airstrikes on Iran's nuclear facilities, escalating regional tensions.
Immediate and noticeable effects. Ethereum dropped 10%, trading at $2,180, while XRP fell 8% to $1.93. The overall cryptocurrency market reacted with a spike in liquidity volume, large liquidations, and prolonged instability.
The strategic role of the Strait of Hormuz in the global oil market
The Strait of Hormuz, located between Iran and Oman, is responsible for transporting about 25% of global oil exports. Although the Iranian parliament does not control the strait, military and security forces play a key role in the final decision. The threats have been enough to shake global markets. Energy companies like ClearView Energy Partners warn that oil prices could exceed $77.01 per barrel by the end of this week unless the US and allies take appropriate diplomatic action.
A storm in the cryptocurrency market as Iran ignites the oil crisis
According to Reuters, the decision to close the Strait of Hormuz stems from the US attack on Iran's nuclear facilities, triggering a strong reaction in the crackdown between Iran and Israel. The cryptocurrency market witnessed significant turmoil over the past 24 hours. Bitcoin, with over $47.7 billion in trading volume, dropped 6.3% this week, with a market capitalization of $1.96 trillion.
Ethereum, currently in a difficult phase, has dropped 14.3% in 7 days, with daily trading volume reaching $29.5 billion. XRP, affected by political factors and legal constraints, fell 10.7% this week, with a market capitalization of $114 billion. Solana also did not escape, dropping 6.4% to $128.65, resulting in a weekly loss of nearly 15%. Meanwhile, BNB fell 3.9% to $608. Tether maintained a rate of $1.00, with a volume of over $76 billion in 24 hours.
Although there has been no actual action to block shipping routes, analysts do not overlook this situation. Eurasia Group predicts that Iran may not completely close the Strait of Hormuz but will increase disruptions to oil tankers. This instability is the main cause of the oil panic, and this crisis chain is dragging down the crypto panic.
Reactions from financial experts and the cryptocurrency trader community
Arthur Hayes, an economist and crypto expert, stated: "Do you hear that? That is the sound of money printers spinning to fulfill the national duty. This weakness will pass, and Bitcoin will assert its position as a safe haven."
The US government warns and responds to the risk of war
Although Iran has not taken official action, the Iranian Revolutionary Guard still holds the final decision-making power. Fighting in the region could escalate into armed conflict, pushing the cryptocurrency market into a state of instability. Experts suggest that closing the Strait of Hormuz would be a clear declaration of war against the Gulf countries and the US, while Iran seems unlikely to want to escalate at this time.
Washington has deployed significant military forces to the region, and any action by Iran could lead to military retaliation. The cryptocurrency market has been severely affected. 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 Strait of Hormuz is the economic lifeline of Iran. If they want to self-destruct their economy and cause global disruption, that is their decision."
Ethereum's price has seen the largest drop this quarter, while Bitcoin has lost the $100,000 mark, erasing many weeks of accumulated gains. XRP, with an unstable legal situation, lost 6% in a day and 10.7% over the week. Market capitalizations have evaporated, and in the hearts of traders, fear is evident through spikes in liquidations.
The only certainty right now is instability. Crypto, oil, and global politics are intertwined. Iran just turned off the lights, leaving an unclear picture for the global market.
Source: https://tintucbitcoin.com/bitcoin-tut-xuong-98k-xrp-giam-8/
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