This Analyst Cites Strait of Hormuz Crisis as Key Driver Behind Bitcoin’s $100K Breakdown ⋅ Crypto World Echo
Recent geopolitical tensions, including US air strikes onIranian nuclear sites and threats to close the Strait of Hormuz, haveheightened risks and impacted global markets.
Oilprices rose sharply, while stock futures edged lower. The crypto marketalso reacted, with Bitcoin briefly dipping below $100,000 over the weekend.
$313M Liquidated as Bitcoin Falls
Bitcoin fell below the key support as tensions between theUS and Iran escalated. The decline followed US air strikes on Iranian nuclearsites and subsequent Iranian threats to close the Strait of Hormuz—a key oilshipping route.
The drop triggered liquidations of long positions, pushingBitcoin to $98,000 before a swift recovery brought it back above $101,500.
Simon Peters, crypto analyst at eToro, noted: “Asthe price began falling on the back of the escalating geopolitical tensions,approximately $313 million worth of traders’ long positions were liquidated,exacerbating the price fall.”
Looking ahead, traders are monitoring a busy week of USeconomic data, including PMI figures today, GDP numbers on Thursday, and theFed’s preferred inflation gauge—the PCE index—on Friday.
Additionally, Fed Chair Jerome Powell’s testimony during theSemiannual Monetary Policy Report to Congress on Tuesday and Wednesday mayinfluence market sentiment, alongside ongoing geopolitical developments.
You may find it interesting at FinanceMagnates.com: KiyosakiPredicts Bitcoin at $1 Million by 2030 as Economic Crisis Looms. How High CanBTC Price Go?
BTCUSD Holds $100K Support Despite Dips
From a technical perspective, BTCUSD is currently tradingabove the $100K level, indicating that this remains a significant supportpoint for the cryptocurrency.However, on shorter timeframes, the price dipped and traded below this level earlier, whichcould signal a potential downside move.
If this decline continues, buyer interest may wane, leadingthe price to seek its next support level. A strong bullish reversal patternnear that area could then attract buyers and help push the price back upward.
🚨 BREAKINGBITCOIN JUST BROKE $100,000This is after Iranian parliament voted to close the Strait of Hormuz — choking off ~20% of the world’s oil supply.-> Oil is spiking-> Stock markets are sliding-> Investors rushing to hard assetsWe are entering uncharted territory. pic.twitter.com/71CtyIJNMk
— Brian Rose, Founder & Host of London Real (@LondonRealTV) June 22, 2025
You may find it interesting at FinanceMagnates.com: ThisAnalyst Who Called XRP’s 600% Rally Just Made Another Bold Price Prediction.
Facing Geopolitical Uncertainty, but InstitutionalInterest Remains Strong
Despite the geopolitical uncertainties, institutionalinterest in Bitcoin persists. Recentinflows into spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust,amounting to about $81 million, contrast with broader market outflows. Surveysshow that over half of institutional investors allocate at least 10% of theirportfolios to digital assets.
🚨🇮🇷🇺🇸 BREAKING: OIL TANKERS are already REFUSING to sail through the STRAIGHT OF HORMUZ. Oil prices are about to EXPLODE! pic.twitter.com/lGgO5DS8Xy
— Jackson Hinkle 🇺🇸 (@jacksonhinklle) June 22, 2025
Regulatory developments, including the establishment of theSEC’s Crypto Task Force and changes in enforcement actions, suggest a movetoward clearer frameworks. Meanwhile, the Federal Reserve’s current rate stanceand possible future easing are factors market participants are considering.Geopolitical risks and upcoming trade deadlines may continue to affect Bitcoinand other risk assets.
This article was written by Tareq Sikder at www.financemagnates.com.
