A false alarm in Hormuz, market sentiment reverses

The recent surge isn't as mysterious as it seems—put simply: Iran has been threatening to close the Strait for a long time, but in the end, it can't be closed. Oil transportation continues, and oil prices have dropped from 74 to 64, bringing a sigh of relief globally.

With oil prices down, inflation pressure in the United States eases immediately, the originally tight expectations for interest rate hikes loosen, and the prospect of interest rate cuts comes back into play. Risk assets rebound immediately, and major cryptocurrencies naturally follow suit.