2 min read
Global cryptocurrency markets took a hit this week after Bitcoin (BTC) fell below $99,000, triggered by heightened tensions in the Middle East. This downturn followed Iran’s parliament voicing support for closing the Strait of Hormuz in retaliation for recent U.S. airstrikes on Iranian nuclear sites. As oil prices retreated over $77 per barrel, the effects rippled directly into energy and crypto markets.
Bitcoin saw a brief drop to $98,460, marking a 6.3% weekly decline. Ethereum (ETH) slumped approximately 10% to near $2,180, while XRP slid 8% to $1.93, adding to a broader slump across riskier digital assets. Analysts reported nearly $950 million in crypto liquidations, with BTC alone seeing massive volume and emotional sell-offs.
Despite the turbulence, leading crypto figures underscore the potential for recovery. Arthur Hayes, former CEO of BitMEX and co-founder of Maelstrom Fund, noted: “This weakness shall pass and $BTC will leave no doubt as to its safe haven status,” suggesting that Bitcoin may regain its position as a hedge amidst economic pressure. However, analysts caution that continued escalation in Strait threats could keep volatility high until geopolitical uncertainty subsides. He was proven partially right, when BTC recovered some of its losses earlier today, slowly creeping past $100K.
As of now, all eyes are on the Strait of Hormuz, and how U.S., Iran and Israel plan to move ahead. The coming days could hold pivotal shifts in energy prices, inflation expectations, and investor sentiment across both traditional and crypto markets.
