22.06.2025 19:13
Following a US airstrike on Iranian nuclear facilities, escalating tensions between the US and Iran, Iran's parliament proposed closing the Strait of Hormuz, a vital global oil transit route. This geopolitical event triggered immediate and significant repercussions across global financial markets, with the cryptocurrency market experiencing a sharp downturn.
Bitcoin's value plummeted, falling below $99,000 on Sunday. This drop followed the announcement of Iran's intention to obstruct the Strait of Hormuz, which carries approximately 25% of the world's oil exports. The ensuing uncertainty and heightened volatility led to substantial trading volume and liquidations within the crypto market.
The impact extended beyond Bitcoin. Ethereum suffered a considerable 10% decline, settling around $2,180. Similarly, XRP experienced a steep 8% drop, trading at $1.93. The overall cryptocurrency market reacted with a surge in trading volume, reflecting widespread investor anxiety. While Iran's parliament backed the closure, the actual authority over the Strait rests with the Iranian military and security forces, yet the mere threat sufficed to destabilize global markets.
Energy analysts from ClearView Energy Partners cautioned that oil prices could experience a substantial increase, potentially exceeding $77.01 per barrel, unless diplomatic efforts were swiftly undertaken by the US and its allies. This development marked a critical juncture, potentially representing the first instance where the ongoing conflict directly impacted global oil supply chains.
The cryptocurrency market reacted dramatically to the news. Bitcoin's 24-hour trading volume soared to a remarkable $47.7 billion, indicating frantic trading activity. The cryptocurrency registered a 6.3% weekly decline, its market capitalization reaching $1.96 trillion. Ethereum, already facing challenges, experienced a more pronounced 14.3% drop over seven days, with daily trading volumes reaching $29.5 billion. XRP, burdened by both geopolitical uncertainty and existing regulatory concerns, saw a 10.7% weekly decline and a market capitalization of $114 billion. Other cryptocurrencies like Solana also experienced losses, reflecting the widespread impact of the escalating geopolitical situation. This information was compiled from various internet sources.
