Crypto Market Slips as Iran Closes Strait of Hormuz Again

The crypto market slipped on Saturday, erasing some of the gains made earlier this week as geopolitical tensions resumed. Bitcoin dropped to $96,000 from $98,000 on Friday.

Some of the top laggards in the industry were RaveDAO, Worldcoin, Algorand, and Pudgy Penguins, which dropped by over 7%. The market capitalization of all tokens dropped to $2.5 trillion.

Crypto Market Reverses as Iran Shuts Strait of Hormuz

Bitcoin and most altcoins jumped on Friday after Iran announced that it had opened the Strait of Hormuz, where 20% of the world’s oil passes through. President Donald Trump hailed in a series of social media posts and media interviews.

The impact of the announcements was immediate as crude oil prices dropped and the crypto market rallied. On Wall Street, the Nasdaq 100 and S&P 500 indices jumped to a record high as the rally continued.

This ceasefire ended on Saturday as Iran disputed Trump’s statements, including the fact that the blockade against Iranian tankers would remain until the enriched uranium is removed from the country.

In a statement, the Iranian Revolutionary Guard said that the Strait was closed and that it had shot at three tankers. As a result, crude oil prices jumped in Hyperliquid, with Brent soaring to $95 and the West Texas Intermediate (WTI) rising to $85.

On the positive side, there are signs that the new developments are part of the US-Iran negotiation strategy and that the two sides will eventually reach a deal. Iran will count its control of the Strait and the monetary gains from the deal as its main victory.

As such, there is a likelihood that Trump, who watches the markets closely, will make concessions before the markets open on Monday next week, a move that will boost the crypto market.

Bitcoin and Top Altcoins Added Billions in Inflows

Meanwhile, the crypto market will be boosted by ongoing accumulation by American investors who believe they are bargains ripe for a bullish breakout.

Data shows that Bitcoin and other top altcoins recorded inflows of over $1 billion this week. Spot Bitcoin ETFs added over $996 million in inflows, the best week since January this year.

The funds have now added over $3 billion in inflows in the last two months, bringing the cumulative total inflows to over $57 billion. They now hold $101 billion in assets, with BlackRock’s IBIT having over $62 billion. Fidelity’s FBTC has $14.2 billion, while Grayscale’s GBTC has $11 billion despite its 1.50% fee.

Meanwhile, spot Ethereum ETFs added $275 million this week after adding $187 million last week. XRP funds added $55 million, while Solana had over $35 million in inflows.

Looking ahead, the next important catalysts for the crypto market will be the upcoming launches of premium income ETFs by companies like BlackRock and Goldman Sachs. These funds will enable holders to earn a monthly dividend derived from a covered call strategy.

Additionally, Schwab, a top financial services company with over $1 trillion in assets under management and millions of American customers, will soon start offering crypto trading services.

Bitcoin Price Prediction: Technical Analysis

A closer look at the Bitcoin price may help determine whether the crypto market crash will continue or is just a pause.

The daily timeframe chart shows that Bitcoin rose to $77,000 after the Strait of Hormuz announcement. At its highest point, this was along the upper side of the ascending channel, which is part of the bearish flag pattern.

Therefore, a clear bullish breakout will be confirmed if it moves above the upper side of the ascending channel. The alternative scenario is where it resumes the downtrend and moves to its lower side. Such a move will lead to more downside for other cryptocurrencies.