Bitcoin
fell below $100,000 on Sunday, marking its lowest point since May, highlighting risk aversion on Wall Street amid reports that Iran may block the Strait of Hormuz.
The Strait, situated between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, accounting for about 20% of the global oil trade.
Concerns about Iranian politicians considering the closure of the Strait have led to fears of a significant spike in oil prices early Monday.
“Following US strikes on Iran last night, over 50 large oil tankers were hastily leaving the Strait of Hormuz. While markets have been closed, an immediate drop in supply is anticipated to push prices up. JP Morgan has termed this their worst-case scenario in the Israel-Iran conflict,” reported The Kobeissi Letter.
According to JPMorgan, oil prices could soar to $120-$130 per barrel in this situation, potentially increasing U.S. inflation rates to 5%, the highest since March 2023, during a period when the Federal Reserve was raising interest rates.
The decline in BTC significantly impacted the broader crypto market, dragging major altcoins like XRP, SOL, and ETH downwards. XRP fell by 6% to $1.935, its lowest since April 10. Ethereum’s ether token reached levels not seen since early May, based on available data.
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