Bitcoin Falls Below $100K as Geopolitical Tensions Mount; XRP, ETH, and SOL Follow Suit
Bitcoin slipped below the $100,000 level on Sunday, hitting its lowest point since early May amid growing market caution ahead of Monday’s trading. The drop came after reports that Iran might close the strategic Strait of Hormuz, a vital oil passage.
The Strait of Hormuz, positioned between Oman and Iran, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, handling about 20% of the world’s oil shipments.
Concerns over a possible blockade have sparked fears of a sharp rise in oil prices in the coming week.
“After U.S. strikes on Iran overnight, more than 50 large oil tankers rushed to exit the Strait of Hormuz. Although markets were closed, an immediate supply disruption is expected to push prices higher. JPMorgan describes this as their worst-case scenario amid the Israel-Iran conflict,” reported The Kobeissi Letter on X.
JPMorgan analysts forecast oil prices could surge to $120-$130 per barrel, potentially driving U.S. inflation to 5%—a level last seen in March 2023 during Federal Reserve rate hikes.
This bearish sentiment weighed heavily on the wider crypto market. Major altcoins like XRP, SOL, and Ethereum’s ETH also tumbled. XRP, focused on payments, dropped 6% to $1.935—its lowest since April 10—while ETH fell to levels not seen since early May, according to CoinDesk data.
