Impact of the Strait of Hormuz Closure on Iran: Crypto Market Risks & Macroeconomic Linkages

Jakarta, Pintu News – The cryptocurrency market has experienced a major shock with Bitcoin (BTC) price dropping to levels below $100,000. This drop came after the Iranian parliament approved a proposal to close the Strait of Hormuz, a step taken following the bombing of Iran’s nuclear sites by the United States.

Impact of the Strait of Hormuz Closure

Bitcoin’s (BTC) price drop to $99,800 was an immediate reaction from the market to heightened geopolitical uncertainty. Ethereum (ETH) also took a hit, dropping 4% to below $2,200, while Ripple (XRP) fell below $2 for the first time since April.

In the last 24 hours, liquidations in the crypto market reached $950 million, indicating a very cautious market sentiment. Additionally, the closure of the Strait of Hormuz has the potential to disrupt global oil supplies, which could exacerbate economic instability. This puts added pressure on financial markets, including cryptocurrencies, which are often perceived as risky assets.

Read More: Crypto Market Crisis: The Impact of US Attack on Iran on Bitcoin and Ethereum!

Crypto Market Risk and Macroeconomic Linkages

Massive selling in the cryptocurrency market reflects broader stress in the financial markets. Liquidations were concentrated on long positions in Bitcoin (BTC) and Ethereum (ETH). The rising Volatility Index (VIX) and widening government bond yield spreads suggest that investors are reducing their risk budgets.

This uncertainty makes it clear that cryptocurrencies are not independent of global economic dynamics. As highly speculative assets, cryptocurrencies are highly sensitive to changes in market sentiment and macroeconomic conditions.

Outlook and Key Indicators

Traders and investors are expected to monitor three key developments: Iran’s final decision on the Strait of Hormuz, global oil market reactions, and policy responses from major central banks. Iran’s decision to close the Strait of Hormuz could extend pressure on Bitcoin (BTC) and the overall digital asset market.

Energy stability and geopolitical clarity will be key to market recovery. If the situation worsens, it is possible that the selling pressure in the crypto market will continue, significantly affecting the price of digital assets.

Closing: Long-Term Implications

The tension in the Strait of Hormuz and its impact on global markets shows how important geopolitical factors are in cryptocurrency market dynamics. Investors should prepare themselves for further volatility and perhaps consider hedging strategies or diversifying their portfolios to reduce risk.

Also Read: Sharp ADA Decline Amid Geopolitical Tensions, What’s the Impact? (23/6/25)

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Bitcoin Price Dips as Iran Threatens to Close Strait of Hormuz. Accessed on June 23, 2025
• Featured Image: Cryptonary