Bitcoin
dropped under $ 100,000 on Sunday, the lowest point since May, and signaled risk aversion on Wall Street on Monday in the midst of reports that Iran is leaning towards blocking the hormuz strait.
The strait, located between Oman and Iran, connects the Persian Gulf with the Bay of Oman and the Arabian Sea handling approx. 20% of the global oil trade.
Reports of Iranian politicians mulling the closure of the strait had observers concerned a significant increase in oil prices early Monday.
“After we strike on Iran last night, the 50+ large oil tankers shrunk to leave the Hormuz Strait. The markets have been closed, but an immediate fall in supply is expected to send prices higher. JP Morgan described this as their worst case in the Israel-Iranian war,” Kobeissi letter of X.
According to JPMorgan, oil was able to wave for $ 120- $ 130 per day. Barrel in this scenario. It could potentially lift the US inflation rate to 5%, the highest since March 2023. At that time, Federal Raised RESERVE raised interest rates.
The losses in BTC weigh heavily over the wider crypto market, as usual, and pulled larger altcoins such as XRP, Sun and ETH lower. The Payments-focused XRP slipped 6% to $ 1,935, the lowest since April 10th. Ethereum’s Ether token slipped to levels seen in early May, according to Coindesk data.
