Bitcoin Plummets Below $100K Amid Iran’s Strait of Hormuz Closure Vote—Here’s Why It’s a Buying Opportunity

Geopolitical shockwaves send crypto markets reeling as Iran's latest move triggers a flight to safety—but smart money sees blood in the water.

The domino effect no one predicted

When Tehran's parliament voted to blockade the world's most critical oil chokepoint, traditional markets weren't the only casualties. Bitcoin—the so-called 'digital gold'—took a 22% nosedive in 48 hours as leveraged positions got liquidated en masse.

Why this is different from 2020

Unlike the COVID crash, this selloff comes with institutional players holding record BTC futures contracts. The real question isn't whether we'll bounce back, but which whales are quietly accumulating at these levels.

Meanwhile, Wall Street analysts suddenly remember that fiat currencies exist only because aircraft carriers say they do. The irony? Bitcoin's network hums along undisturbed—no emergency Fed meetings required.

The market downturn has also caused a broader selloff amongst altcoins, most of which are DEEP in the red, resulting in almost $1 billion worth of liquidated positions, according to CoinGlass.

As CryptoPotato reported earlier today, the US joined the war between Israel and Iran, striking three strategic nuclear Irany sites.

In response, some media reports indicate that the Iranian Parliament has voted in support of closing the Strait of Hormuz – one of the world’s most criticial oil transit chokepoints.

This resulted in immediate increase in oil prices, which are up almost 1% on the day, sparking international fears of inflation and economic turmoil. Traders are seemingly derisking and it’s interesting to see how deep this correction will extend.