Crypto markets opened in red on Saturday with Bitcoin down 2.3% at the time of writing, as per CoinDesk. This comes amid the US-Iran tensions and has left many worried.
Today's markets opened in the red after the poor performance yesterday. Bitcoin briefly slid below $70,000 on Friday, even as inflation fears tied to the US-Iran tensions rattled market sentiment.
Experts weighed in on the crash.
Crypto crash: Investors raise questions; experts weigh in
“Crypto market sentiment has deteriorated again. The persistence of extreme fear suggests that positioning remains defensive, even as some market participants anticipate a relief rally,” analysts at venture capital firm Tagus Capital said as per Bloomberg.
Another person claiming to be a Bitcoin analyst, tied the crypto crash with President Donald Trump's recent announcement about the Strait of Hormuz.
Also Read | Trump threatens to 'obliterate' Iran power plants if Strait of Hormuz is not reopened within 48 hours
“Bitcoin just nuked below $69,000 after Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz isn’t reopened in 48 hours," the person wrote.
{{/usCountry}}“Bitcoin just nuked below $69,000 after Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz isn’t reopened in 48 hours," the person wrote.
{{/usCountry}}“This Crypto Crash is NOT random. This is geopolitics hitting markets in real time,” they added.
Another investor on X wrote “Threaten to OBLITERATE Iran and watch crypto crash. What could this possibly mean for the market on Monday?”.
Notably, Trump has threatened to open up the Strait of Hormuz, which is in a chokehold now, disrupting supply of energy and pushing up prices. The president said that if it was not done, the US would attack Iranian power stations, starting with the largest. Trump's announcement came in a Truth Social post but the impact could be felt during trading as well.
Jake Ostrovskis, head of OTC trading at Wintermute told Bloomberg that traders are weighing whether higher oil prices will push up inflation or stall growth. He added “Either way, Bitcoin sits in the crossfire — headline volatility from the conflict is driving sharp intraday swings as the market reprices the macro path in real time.”
What to know about Bitcoin amid the US-Iran war
Bitcoin has been dealing with the conflict in the Middle East better than most assets. Other than a brief selloff just after the US and Israel initiated a bombing campaign against Iran on Feb. 28, it has remained relatively calm. The token even showed positive returns so far this month.
Bitcoin’s price is up roughly 7% in March. Gold is down around 13% after a long rally that saw bullion repeatedly hit record prices. The global benchmark Brent crude is up more than 40% as disruptions to trade and oil-field bombings take a toll.
(With Bloomberg inputs)