Coin-related Stocks Face Upheaval Amid Hormuz Tensions...What's the Fate of Circle, Strategy, and Coinbase?

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As geopolitical tensions in the Strait of Hormuz escalate, major virtual asset-related stocks, synchronized with Bitcoin, are expected to face unprecedented volatility this week.

According to CoinGape, a cryptocurrency specialized media outlet, on April 12 (local time), market attention is focused on the stock prices of major companies such as Circle (CRCL), Strategy (MSTR), Coinbase (COIN), and Bitfury (BMNR), as Middle East-originating risks accelerate, including Iran's threat to blockade the Strait of Hormuz and demand for virtual asset tolls. News that Iran's Islamic Revolutionary Guard Corps is demanding Bitcoin (BTC) or XRP as a toll from oil tankers passing through the strait exacerbates regulatory uncertainty and increases downward pressure on related stocks.

Virtual asset exchange Coinbase is facing stock price pressure due to concerns about market liquidity contraction caused by the Middle East crisis, despite the positive news of securing regulatory clarity. Strategy, which also holds a large amount of Bitcoin, has seen an intensified synchronization of its stock price with Bitcoin price fluctuations, and its stock direction this week is likely to be determined by whether Bitcoin's support level holds. Especially for Strategy, which holds over 214,400 BTC, a deterioration in investor sentiment due to a decline in asset value is inevitable.

Circle, a stablecoin issuer preparing for an IPO, is maintaining a relatively strong performance amid this geopolitical crisis, as the potential for stablecoins to be used as actual payment methods is highlighted. On the other hand, mining company Bitfury is facing a double whammy of increased mining costs due to rising energy prices and a drop in Bitcoin prices, requiring investor caution. As mining efficiency dictates performance, surging oil prices act as a fatal weakness for mining company stock prices.

Benjamin Cowen, founder of IntoTheCryptoverse, warns that tensions in the Strait of Hormuz could trigger a rise in oil prices, which in turn could lead to inflationary pressure and negatively impact the Federal Reserve's interest rate policy. Cowen analyzed that if risk aversion sentiment strengthens, Bitcoin prices could fall, directly leading to the evaporation of market capitalization for coin-related stocks. Economic experts predict that this situation will be a major watershed testing the safe-haven asset status of the virtual asset market.

This week, virtual asset-related stocks are expected to react more sensitively to military movements in the Middle East and changes in the energy market than to macroeconomic indicators. Investors should prioritize external geopolitical variables over individual company fundamentals, maintain a conservative asset allocation strategy, and closely monitor signals of market trend reversal. Until the geopolitical crisis is resolved, the possibility of losses due to high volatility should be kept in mind.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*