This is Why Bitcoin is Dumping?
The post This is Why Bitcoin is Dumping? appeared on BitcoinEthereumNews.com. The post This is Why Bitcoin is Dumping? appeared first on Coinpedia Fintech News The crypto market just got hit hard, dropping to $3.12 trillion, while Bitcoin has plunged below the $100,000 mark, marking its lowest level since early May. This recent drop came in response to the escalating Iran-Israel war, with the U.S. stepping in between. This has led Iran to close the Strait of Hormuz for the first time since 1972, triggering a sharp dip in Bitcoin’s price. So, what’s the connection between the Strait of Hormuz and a crypto crash? Let’s break it down. Geopolitical Tension Hits Bitcoin $100k The most recent reason behind the bitcoin price crash was that Iran’s parliament has approved a move to block the Strait of Hormuz —a vital passage for about 20% to 30% of the world’s oil supply, which has rattled global markets. While the decision hasn’t been finalized yet, if closed, then the shipments of 20 plus million barrels of oil per day will be affected and will surge the oil price, possibly even hitting $100 per barrel. In fact, according to JP Morgan estimates, a closure of the Strait of Hormuz could send oil prices to $120-$130/barrel. This would imply a spike in US CPI inflation to ~5%. The last time we saw US inflation at 5% was in March 2023, when the Fed was aggressively hiking rates. pic.twitter.com/SwhsQZ1vzS — The Kobeissi Letter (@KobeissiLetter) June 22, 2025 A spike in oil typically leads to inflation fears and pushes investors away from risky assets like Bitcoin. As a result, Bitcoin broke below the $100,000 mark after holding strong for 45 days. This break triggered concern across the crypto space, especially among traders with high-leverage positions. Chart Patterns Confirm the Fear According to crypto analyst CryptoKid, Bitcoin is showing clear…
The post This is Why Bitcoin is Dumping? appeared on BitcoinEthereumNews.com.
The post This is Why Bitcoin is Dumping? appeared first on Coinpedia Fintech News The crypto market just got hit hard, dropping to $3.12 trillion, while Bitcoin has plunged below the $100,000 mark, marking its lowest level since early May. This recent drop came in response to the escalating Iran-Israel war, with the U.S. stepping in between. This has led Iran to close the Strait of Hormuz for the first time since 1972, triggering a sharp dip in Bitcoin’s price. So, what’s the connection between the Strait of Hormuz and a crypto crash? Let’s break it down. Geopolitical Tension Hits Bitcoin $100k The most recent reason behind the bitcoin price crash was that Iran’s parliament has approved a move to block the Strait of Hormuz —a vital passage for about 20% to 30% of the world’s oil supply, which has rattled global markets. While the decision hasn’t been finalized yet, if closed, then the shipments of 20 plus million barrels of oil per day will be affected and will surge the oil price, possibly even hitting $100 per barrel. In fact, according to JP Morgan estimates, a closure of the Strait of Hormuz could send oil prices to $120-$130/barrel. This would imply a spike in US CPI inflation to ~5%. The last time we saw US inflation at 5% was in March 2023, when the Fed was aggressively hiking rates. pic.twitter.com/SwhsQZ1vzS — The Kobeissi Letter (@KobeissiLetter) June 22, 2025 A spike in oil typically leads to inflation fears and pushes investors away from risky assets like Bitcoin. As a result, Bitcoin broke below the $100,000 mark after holding strong for 45 days. This break triggered concern across the crypto space, especially among traders with high-leverage positions. Chart Patterns Confirm the Fear According to crypto analyst CryptoKid, Bitcoin is showing clear…
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