Bitcoin 'Falters', Oil Prices Soar...Market 'Turbulent' on Hormuz Risk

▲ Iran, Strait of Hormuz, Bitcoin (BTC)/AI generated image

Bitcoin (BTC) showed a downward trend, while international oil prices surged, heightening tension in the global financial market. This is interpreted as the result of a spreading risk-off sentiment, driven by the increasing possibility that U.S. President Donald Trump might extend the blockade of the Strait of Hormuz.

According to a CryptoPotato report, Bitcoin has recently been under downward pressure, limiting its upward momentum, while crude oil prices have surged due to escalating tensions in the Middle East. In particular, concerns about energy supply disruptions have spread throughout the market as the Trump administration considers extending the blockade of the Strait of Hormuz as a means of pressure against Iran.

In reality, the Strait of Hormuz is a critical passage for global oil transportation, and a prolonged blockade could lead to a supply shock. Such geopolitical risks, coupled with upward inflationary pressure, are dampening investor sentiment and burdening risk assets across the board, including cryptocurrencies.

Recently, international oil prices have strongly rebounded, reflecting these concerns. Market analysis suggests that prices continue to rise, reflecting the possibility of intensifying crude oil supply disruptions if the blockade is prolonged.

Bitcoin is an asset that traditionally reacts sensitively to changes in liquidity and the macroeconomic environment, and soaring oil prices and escalating geopolitical tensions are identified as factors exerting short-term downward pressure. In particular, it appears that concerns about a potential decrease in risk asset preference are reflected, as the uncertainty regarding interest rate paths expands with the increasing possibility of inflation re-accelerating.

Ultimately, the market appears to have entered a phase of searching for direction amidst a complex interplay of energy supply risks, monetary policy variables, and geopolitical tensions. Bitcoin's short-term trend is also expected to be heavily influenced by these macroeconomic changes.

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