Bitcoin experienced a significant drop on Sunday after Iran's parliament approved a draft bill to potentially close the Strait of Hormuz, a crucial global oil passage. This decision follows increased tensions in the Middle East, particularly after the U.S. bombed three Iranian nuclear sites, officially escalating the conflict. Bitcoin fell below the critical $100K threshold, reaching around $98,800, while the broader crypto market saw over $1.1 billion in liquidations as investors reacted swiftly. The closure of the Strait, which handles nearly 25% of global oil shipments, could lead to soaring oil prices, triggering inflation and delaying central bank rate cuts. Higher energy costs would burden consumers and businesses alike, prompting investors to seek safer assets like U.S. Treasuries, further impacting cryptocurrencies. As the conflict intensifies, market focus shifts to energy security, with Bitcoin now valued at $98,883, marking a loss of vital support. Ethereum and XRP also faced declines, reflecting widespread panic in the crypto market. Read more AI-generated news on: https://app.chaingpt.org/news

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