Bitcoin down 2%, Ethereum down 3%... Market Overturned by Hormuz Blockade

▲ Ships anchored and stopped in the Strait of Hormuz

As Middle East risks resurfaced, the rebounding cryptocurrency market came to a sudden halt within a day.

According to DLNews on April 19 (local time), Bitcoin (BTC) and Ethereum (ETH) shifted to a downtrend after Iran declared the closure of the Strait of Hormuz. Bitcoin fell by approximately 2% over 24 hours, dropping to around $76,252, while Ethereum also traded down by about 3% at $2,365.

Both assets had previously rebounded to a two-month high amid expectations of a truce between the US and Iran, but the upward trend was broken as geopolitical uncertainties resurfaced. However, they still maintain an approximate 5% gain over the past seven days.

The direct catalyst for this decline was Iran's statement that it had again blockaded the Strait of Hormuz, a strategic chokepoint. The market had been rising on optimism generated by President Donald Trump's statement that “the war will end soon,” but as the prospect of a truce wavered, risk aversion sentiment quickly spread.

Trump emphasized that negotiations were progressing smoothly but strongly criticized Iran's move to blockade the strait as “blackmail.” On the other hand, Iran raised tensions by stating its actions were in response to the US naval blockade.

Meanwhile, this week also saw capital inflows into the market. Approximately $1 billion flowed into Bitcoin spot ETFs and about $276 million into Ethereum spot ETFs, indicating expanded institutional demand, but upward momentum appears limited in the face of geopolitical variables. Analysts suggest that the market is repeating a pattern of downward pressure on war news and rebounds on truce expectations.

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