Bitcoin has plummeted sharply amid fears U.S involvement in the Israel-Iran conflict could escalate into a wider regional war (adding to volatility expected from an imminent Federal Reserve earthquake).
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The bitcoin price, after shrugging off the initial exchange of fire between Israel and Iran, has crashed under $100,000 per bitcoin despite U.S. president Donald Trump confirming a “massive” game-changer this week. Ethereum, XRP and other major cryptocurrencies have also plummeted, wiping $250 billion from the combined market in just 24 hours.
Now, with bitcoin and crypto braced for “trillions” to hit the market, a “doomsday scenario” is expected to weigh on the bitcoin price as Iran’s parliament has reportedly voted to approve the closure of the strategic Strait of Hormuz—crucial for the global oil supply.
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U.S. president Donald Trump announced the bombing of Iran, sending shockwaves through markets and … More
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Iran’s top security body, the Supreme National Security Council, is expected to decide on Hormuz closure after parliament approval, it was reported by France24, citing Press TV.
Iran lawmaker and Revolutionary Guards commander Esmail Kosari reportedly told the Young Journalist Club that closing the oil route is on the agenda and “will be done whenever necessary.”
“Spooked energy markets, fearing further escalation, are apt to respond to the U.S. strikes with a sharp jump in crude prices,” Reuters analyst Ron Bousso wrote. “But even in a doomsday scenario where the Strait of Hormuz is blocked, history suggests markets should not expect any supply shock to be persistent.”
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Earlier this week, analysts warned that the rising risk of Iran closing the key global oil market passage, which moves 20% of the world’s oil, could spark a fresh round of bitcoin price and crypto volatility.
It’s a “big risk to watch out for,” Tracy Jin, the chief operating officer of crypto exchange MEXC, said in emailed comments.
“[The bitcoin price] future largely depends on developments in the Middle East,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments ahead of the U.S. bombing of Iran.
“Escalation in the form of other countries getting involved and Iran blocking the Strait of Hormuz could lead to a further deterioration in global risk appetite and a rollback of [bitcoin’s] upward trend.”
