Bitcoin Falls Below $100,000 as Iran Moves Close to Strait of Hormuz, Altcoins Plunge
The global cryptocurrency market is having a bloody weekend as geopolitical tensions continue to escalate in the Middle East. Over the past 24 hours, the total crypto market capitalization has lost $90 billion, falling to just $3.07 trillion, its lowest since early May. Bitcoin has officially lost the psychological $100,000 mark, while a host of altcoins have seen deep declines, reflecting the widespread panic across the market.
Bitcoin Loses $100,000 Mark After 46 Days
According to data from CoinGecko, the price of Bitcoin officially dropped below $100,000 for the first time in more than six weeks on the morning of June 22 (ET). Specifically, at 10:25 am, BTC recorded at $99,790, down more than 3% compared to the previous day. This adjustment occurred right after the Iranian Parliament approved the plan to close the Strait of Hormuz, one of the world's most important oil shipping routes.
Iran and the Strait of Hormuz: Headwinds for the financial market
Iran's final move to block the Strait of Hormuz has raised great concerns among global investors. This sea is the transit point for nearly 30% of the world's crude oil transported by sea. If blocked, a global oil shortage is almost certain, leading to increased inflation, pushing back expectations of interest rate cuts and putting heavy pressure on risky assets such as crypto.
Meanwhile, WTI and Brent crude oil prices are recording slight increases at $73.84 and $77.01 per barrel, respectively, while Murban crude is trading at $77.39, reflecting widespread supply concerns in the energy market.
Ethereum, XRP, Solana and Aptos plummet
While Bitcoin suffered significant losses, altcoins were hit even harder. Ethereum (ETH) has fallen nearly 9% on the day, currently trading around $2,205. XRP has lost the $2 mark, falling to $1.96, while Solana (SOL) is trading at $128.30, down 8.5% over the past 24 hours.
Aptos (APT) was the hardest hit, plunging 14%, while Injective (INJ) and Celestia (TIA) lost 12.5% and 11.8%, respectively. VIRTUAL Protocol also fell 10.6% on the day.
Nearly $900 Million Liquidated: Pressure from Financial Leverage
The weekend crash has sparked a wave of liquidations in the crypto derivatives market. Since yesterday, the total value of liquidations has reached more than $876.41 million, with the majority of $777.91 million coming from long positions. Of this, Bitcoin accounted for about $161 million in liquidations, while Ethereum led the way with nearly $300 million.
This figure shows that highly leveraged traders have been “wiped out” of the market due to the sharp price swings, especially when the market has not had enough momentum to recover after the news shock.
Crypto Outflows, Liquidity Increases Due to Selling Pressure
Market-wide trading volume on Sunday increased to $123.37 billion, up more than 20% from the previous day. However, this increase is not a positive sign. Instead, the inflows were mainly driven by sell-offs, stop-losses, and automatic liquidations from margin trading platforms.
Bitcoin’s share of the total market now accounts for 65.2%, up slightly as altcoin outflows return to BTC as a “less risky” asset in the crypto group. Ethereum, meanwhile, accounts for 8.6% of the market share.
Short-term Outlook: Uncertainty Not Over
With tensions between Iran and the West, especially the US, showing no signs of abating, the crypto market is likely to continue to be under pressure in the coming days. The move to close the Strait of Hormuz, if approved by Iran's Supreme National Security Council, would create a major macro shock that would impact all financial markets, including crypto.
In that context, investors should closely monitor macro indicators such as oil prices, bond yields, the US dollar index, and statements from the US Federal Reserve (Fed). A move to raise interest rates or maintain a tight monetary policy would further increase pressure on risky assets.
Conclusion
Iran's move to close the Strait of Hormuz has sparked a wave of panic in the crypto market. Bitcoin price lost the $100,000 mark after 46 days of holding, while a series of altcoins fell freely, wiping tens of billions of dollars from their market capitalization. The weekend sell-off is a clear reminder that crypto does not operate independently of the real world, but is closely tied to macro factors, geopolitics and global money flows.
In the short term, the trend remains negative and investors need to be extremely cautious when making trading decisions in the current volatile environment.