Bitcoin fell under $100,000 as worries over oil supply shocked markets.
- Rising risk in the Middle East has investors pulling back.
- Oil prices are expected to surge, triggering broader concern.
- Altcoins like XRP and Ethereum also saw sharp drops.
Bitcoin Hits Lowest Price Since May
Bitcoin dropped below $100,000 for the first time since May 2025. This move signals that investors may be avoiding risky assets. The reason seems tied to growing worries about possible oil supply problems in the Middle East.
Iran May Cut Off Oil Route
Reports show that Iranian leaders may block the Strait of Hormuz. This waterway is vital for oil shipping. It connects countries like Iraq and Saudi Arabia to the rest of the world. About 20% of all global oil goes through it. Suddenly cutting it off would reduce oil supply fast and raise prices.
Oil Prices Could Skyrocket
JP Morgan said that if the Strait is blocked, oil could spike to $120–$130 a barrel. This could push U.S. inflation up to 5%. That would be the highest level since March 2023. Higher oil and inflation usually hurt the economy. Because of this, investors are playing it safe and selling crypto.
Crypto Market Reacts Fast
When Bitcoin drops, other crypto coins usually fall too. That’s what happened this time. XRP fell 6% to $1.935, its lowest price since April 10. Ethereum also dropped, hitting prices last seen in early May. This shows how linked crypto prices are to global news events.
Wall Street Feels the Heat
The fear isn’t just in crypto. Stock markets and oil markets are also nervous. Over 50 large oil tankers left the Strait quickly after U.S. strikes on Iran. Markets were closed over the weekend, but things could change fast once they reopen. Investors and analysts are watching closely.
Source: coindesk.com
