- Bitcoin and other major cryptocurrencies dropped sharply due to fears of wider conflict in the Middle East.
- About $250 billion was wiped from the overall crypto market within 24 hours.
- Iran’s parliament voted to potentially close the Strait of Hormuz, a key oil route, after U.S.-Iran military escalation.
- Analysts warn that closing the strait could increase global oil prices and cause further crypto market volatility.
- Experts say the future of bitcoin prices depends on ongoing developments in the Middle East.
Bitcoin and other leading cryptocurrencies saw significant price declines following concerns over the possible expansion of military conflict between the United States, Israel, and Iran. This drop happened as tensions rose in the Middle East, sparking investor uncertainty.
The bitcoin price fell below $100,000, while popular digital currencies like Ethereum and XRP also lost value, cutting $250 billion from the total cryptocurrency market in only one day. The plunge came after reports that U.S. President Donald Trump ordered airstrikes on Iran, which added to market unease.
According to USA-bombing”>France24, Iran’s parliament voted to support the possible closure of the Strait of Hormuz, a vital passage that moves about 20% of the world’s oil supply. Iran’s Supreme National Security Council will decide on the final action after parliament’s approval. "Closing the oil route is on the agenda and will be done whenever necessary," said lawmaker and Revolutionary Guards commander Esmail Kosari, as reported by the Young Journalist Club.
Energy analysts note that such a move could shock energy markets and cause crude oil prices to surge. "Spooked energy markets, fearing further escalation, are apt to respond to the U.S. strikes with a sharp jump in crude prices," wrote Reuters analyst Ron Bousso in a recent report. However, Bousso also pointed out that even if the Strait is blocked, any supply disruption may not last long based on past events.
Earlier this week, experts warned that the risk of Iran shutting this key oil channel could lead to higher volatility in both oil and crypto markets. Tracy Jin, chief operating officer of crypto exchange MEXC, called it a major risk for investors to watch.
The price of bitcoin now depends heavily on how the situation in the Middle East develops, according to Alex Kuptsikevich, chief market analyst at FxPro. He said, "Escalation in the form of other countries getting involved and Iran blocking the Strait of Hormuz could lead to a further deterioration in global risk appetite and a rollback of bitcoin’s upward trend."
The Strait of Hormuz has long been considered a strategic chokepoint for global oil supplies. Past threats to its closure have caused sharp market reactions, but disruptions have usually been temporary.
Additional details show that market participants remain cautious amid these heightened geopolitical risks, while closely watching updates from the region.
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