After the United States struck targets near the Strait of Hormuz in Iran, risk aversion increased in global markets. Oil prices rose above $90 per barrel, Asian stock markets and crypto assets weakened simultaneously, and Bitcoin fell back to around $76,900, driving down mainstream tokens such as Ethereum and XRP.
Geopolitical conflicts drive up oil prices
U.S. President Donald Trump confirmed the strike and warned Iran not to retaliate. He also stated that he has no intention of pushing Iran back to negotiations and that he does not care whether Tehran signs the agreement or not.
After the news spread, traders began to re-evaluate the risks of disruptions to transportation through the Strait of Hormuz. This waterway is one of the key routes for global crude oil transport, and there are concerns in the market that if the conflict continues to escalate, energy supplies could be affected for an even longer period of time.
Risky assets are generally under pressure.
This round of volatility is not limited to the crude oil and crypto markets. Japan's Nikkei index fell by 2.7%, with tech stocks leading the decline. South Korea's inflation rate in August was 3.1%, slightly lower than the market's expectation of 3.2%, but it failed to reverse the overall risk-aversion sentiment.
- Bitcoin reports $76,926.53, down 2.2% for the day.
- Ethereum reports $2,395.12, down 3.0% for the day.
- XRP traded at $1.33, down 3.7% for the day.
The total market value of the crypto market has dropped to $2.7 trillion, with a single-day decline of about 1.4%, and trading volume amounted to approximately $82.4 billion. Solana fell to $98.77, a decrease of 4.0%; BNB reported $681.55, a drop of 1.8%.
The market is still observing the subsequent trend.
Despite the short-term pressure, some analysts believe that the current trend of Bitcoin bears similarities to the bottoming-out phase in 2023. Analyst Ali Charts noted that back then, Bitcoin tested the resistance levels multiple times, and after each setback, it would fall back to the middle of the range until the fourth attempt when it finally broke through, initiating a clear upward trend.
He believes that if this pattern reappears, Bitcoin may still experience more ups and downs before it truly strengthens, and could even test the $70,000 range again.
However, judging from the current market reaction, the dominant factor remains the geopolitical situation itself. If tensions between the United States and Iran continue to escalate and oil prices remain high, funds may continue to lean towards defensive strategies, and short-term fluctuations in risky assets could also remain at a relatively high level.
