Bitcoin (BTC) experienced a drop below $100,000 on Sunday, reaching $99,584.18, the lowest level since May. This decline suggests growing risk aversion among investors, particularly as reports indicate that Iran may be considering blocking the Strait of Hormuz, a vital passage for oil transportation. Approximately 20% of the global oil trade passes through this strait. Concerns over potential oil supply disruptions have led to fears of soaring oil prices. The Kobeissi Letter highlighted that after recent US strikes on Iran, over 50 large oil tankers attempted to exit the strait. If the supply decreases significantly, JPMorgan estimates oil prices could climb to between $120 and $130 per barrel, pushing the US inflation rate to 5%, the highest level since March 2023.
The impact of Bitcoin's decline was evident across the broader crypto market as major altcoins like XRP, SOL, and ETH also experienced losses. XRP fell by 6% to $1.935, marking its lowest point since April 10. Ethereum's ether token dropped to levels last seen in early May, according to CoinDesk data.
The impact of Bitcoin's decline was evident across the broader crypto market as major altcoins like XRP, SOL, and ETH also experienced losses. XRP fell by 6% to $1.935, marking its lowest point since April 10. Ethereum's ether token dropped to levels last seen in early May, according to CoinDesk data.
