Bitcoin has been showing resilience in the face of recent attacks on Iran. However, experts warn that the escalating conflict and the possible closure of the Strait of Hormuz could trigger a sharp correction in the crypto market.
The looming shadow of the possible closure of the Strait of Hormuz, a crucial waterway for global energy trade, has tested the resilience of Bitcoin and the crypto market.
This threat has caused the price of Bitcoin to lose vital support around $100.000, a very important psychological and technical level for investors. In the last 24 hours, the leading cryptocurrency experienced a correction of nearly 4%, falling towards the $99.000 per BTC.
Analysts warn that if the blockade of the Strait of Gibraltar becomes a reality, we could see a deeper correction in the crypto market, reflecting the uncertainty that the geopolitical crisis is sowing among investors.
BUY BITCOIN WITHOUT HASSLEThe Strait of Hormuz is in jeopardy: Iranian threat shakes energy markets
The conflict between Iran and Israel is experiencing a worrying escalation, especially following the attacks carried out by the United States against Iranian targets. This situation has raised international alarm, and in response, The Iranian Parliament has threatened to close the Strait of Hormuz, according to Reuters. This strait is a strategic shipping lane, essential for the export of oil and natural gas from the Persian Gulf, accounting for approximately 20% of global oil trade. Therefore, its closure would have an immediate and serious impact on energy markets.
Faced with the threat, markets have reacted swiftly and volatilely. An effective closure of the Strait is expected to trigger a significant increase in oil and gas prices, which in turn could fuel inflationary pressures already present in many economies. This resulting volatility could complicate global monetary policy decisions, generating uncertainty and nervousness among investors and operators across all sectors.
Geopolitical storm puts Bitcoin and Ethereum to the test
The recent wave of attacks and the threat of a blockage across the Strait have significantly affected major cryptocurrencies.
Bitcoin, often seen as a store of value in the face of uncertainty, suffered a brief but significant 4% drop, breaking below the $100.000 support. Ethereum, the second-largest cryptocurrency, suffered even more, losing nearly 8% to fall below $2.200.
PREPARE YOUR WALLET NOWThis turbulence did not go unnoticed and left more than 800 million dollars in liquidations of positions in the market, affecting more than 242.000 traders, According to data from Coinglass, the geopolitical situation is leaving a clear mark on Bitcoin and Ethereum, reflecting the crypto market's sensitivity to the geopolitical climate and global events.
Source: CoinGecko
Experts warn that a genuine closure of the Strait could unleash a domino effect of systemic risks, causing extreme volatility not only in cryptocurrencies but also in other risky assets globally. For now, nervousness prevails and selling pressure intensifies, leaving investors on high alert.
The duality of Bitcoin as a macro hedge and volatile asset
When global markets begin to falter, the narrative of Bitcoin as a safe haven and macro hedge. But What does this really mean? Well, in times of economic uncertainty or expansionary monetary policies, Bitcoin is seen as a kind of "insurance" against financial instability. Its planned scarcity and independence from traditional banking systems make it an attractive asset to protect against inflation or the devaluation of fiat currencies.
However, this idea of Bitcoin as a safe haven doesn't always play out in the short term. When volatility spikes and fear grips the markets, as is currently the case, investors tend to sell assets considered risky, and cryptocurrencies are no exception. At these times, selling pressure dominates, and Bitcoin's price can be affected, reflecting the global uncertainty.
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However, analysts predict that in the long term Bitcoin could consolidate itself as a shield against economic crises, although in the short term its behavior is closely linked to market psychology and risk aversion.
For crypto market participants, this stage highlights the importance of caution and well-informed trading. Current volatility can open up opportunities for users with appropriate risk profiles, as long as exposure is carefully managed and information from reliable sources is used. In this context, platforms like Bit2Me offer secure access and useful tools to navigate these fluctuations, facilitating both trading and risk control.
BUY ETHEREUM HEREMarkets under pressure
The rapidly escalating tension between Iran and Israel, the US intervention, and the threat to close the strategic Strait of Hormuz, which awaits approval from Iran's Supreme National Security Council, the country's top security body, have set off alarm bells in the financial world. In the cryptocurrency market, Bitcoin, Ethereum, and other digital assets are under considerable pressure, while experts warn that turbulent days could lie ahead for this sector. The closure of this key passage would not only affect the global energy market but could also trigger a domino effect impacting cryptocurrencies and other risky assets.
Therefore, for those who closely follow the crypto universe, understanding this geopolitical situation is more important than ever. The connection between international conflicts and the behavior of digital markets is becoming increasingly evident, forcing investors and analysts to be vigilant, thoroughly research, and prepare solid strategies to navigate such unpredictable waters.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
