BTC temporarily plummeted below 100K USD due to inflation concerns from Iran's threat to blockade oil.
Experts predict a strong short-term recovery, easing the escalating situation between the United States and Iran.
Fears of Iran blocking the Strait of Hormuz, a critical global oil transportation route, caused the market to drop below 100K USD for Bitcoin [BTC] over the past weekend.
Reports indicate that the Iranian parliament has approved a plan to blockade this choke point on the global oil corridor, raising concerns about high inflation.
Oil and gas prices will surge if a lockdown occurs, Goldman Sachs warns in a report released on Sunday.
Last week, TinTucBitcoin reported that this move could create domino risks in the cryptocurrency market, pulling BTC down this year.
Recovery or a bull trap?
However, as of now, the Supreme Leader of Iran has not officially approved the blockade. Meanwhile, the odds on Polymarket regarding the likelihood of closing the Strait of Hormuz have dropped to 30% from 50% on June 22.
This somewhat helps stabilize the market, clearly reflected in the price of BTC rising from 98K USD to 101K USD.
In the large-cap group, Hyperliquid [HYPE] shows impressive strength with a 16% recovery from the weekend's low.
Ethereum [ETH] dropped to 2.1K USD but quickly regained the 2.2K USD range. However, Ripple [XRP] and Binance Coin [BNB] have a rather sluggish recovery on the large-cap rankings.
Source: Velo
Galaxy Digital founder Mike Novogratz commented that the market could recover by the weekend, easing the strong reaction from Iran to US attacks.
"The next 72 hours are crucial, but without a real counterattack, the market will surge by the weekend."
Source: Novogratz/X
Gred Madagini, Director of the Derivatives Department at the cryptocurrency options analysis platform Amberdata, also shared a positive outlook and commented,
"The US stock market has seen high volatility due to tensions between Iran/Israel/the United States. However, US stock futures opened on Sunday showing signs of stabilization, and the market is not overly panicked."
The Bitcoin Fear and Greed Index has dropped from 'greed' last week to 'neutral.' This reflects investor indecision while creating a buying opportunity for BTC as the market remains fearful.
Nevertheless, the Delta reversal rate (25RR) for the July expiration options contracts remains negative, reflecting a high premium for short-term put orders that are defensive (bearish predictions).
This indicates that market sentiment is temporarily leaning towards the negative as it awaits further developments in the Middle East.
If the situation worsens, the key support levels to watch are 98K USD and 94K USD to assess whether the risk of a downward trend is increasing.
Source: Deribit
Source: https://tintucbitcoin.com/crypto-hom-nay-iran-de-doa-lam-phat/
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