Bitcoin, Fear of Plunge Amid Strait of Hormuz Blockade... Will it drop to the early $60,000s?

▲ Iran, Strait of Hormuz, Bitcoin (BTC)/AI Generated Image

As the U.S. considered blocking the Strait of Hormuz, international oil prices surged, shaking the market. Simultaneously, fears of a Bitcoin (BTC) crash spread.

According to Cointelegraph, a cryptocurrency specialized media outlet, on April 13 (local time), the U.S. administration is considering blocking the Strait of Hormuz in response to threats from Iran. U.S. President Donald Trump emphasized that this measure is a decisive action for national security. As military tensions in the Middle East reached their peak, funds are rapidly exiting the virtual asset market.

Bitcoin prices fell below the $70,000 mark. It is currently trading in the $68,000 range. Meanwhile, international oil prices surged, threatening the $100 per barrel mark. Investors are selling off risky assets due to fears of war. Instead, they are observed to be seeking refuge in safe-haven assets such as gold and the dollar.

A clear downtrend is evident in the futures market. A large volume of long positions was liquidated due to the price drop. This accelerated the downward pressure. Trump's strong remarks severely dampened investor sentiment. The market's open interest is also rapidly decreasing.

The blockade of the Strait of Hormuz exacerbates inflationary pressures. This becomes a negative factor, delaying the Federal Reserve's timing for interest rate cuts. High oil prices fuel inflation. Ultimately, this dries up liquidity in the capital markets, negatively impacting virtual assets. Whales have stopped further purchases and have adopted a wait-and-see approach.

The total market capitalization of the virtual asset market evaporated by hundreds of billions of dollars in an instant. If the tensions in the Middle East are not resolved, the aversion to risky assets is expected to continue for the time being. Market participants are closely watching whether the Trump administration will implement actual military measures. They are observing changes in international energy prices and responding to increased volatility.

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