US-Iran Conflict: Strait of Hormuz Becomes Key Indicator for Crypto Traders

The closure of the Strait of Hormuz, which carries 20% of global oil supply, has become a key variable in cryptocurrency markets. The US-Iran conflict has led to increased volatility in oil prices, and subsequently in cryptocurrency markets. Trump's Truth Social posts have often influenced market movements, with his announcements on the situation in Iran sparking significant price swings.

According to analysts, Bitcoin has been trading in a $65,000 to $70,000 band throughout the conflict, rising on peace signals and falling on escalation. The Strait of Hormuz is the direct transmission mechanism for oil prices, which are closely tied to inflation expectations and interest rates. A closed Strait would keep oil elevated, complicating the rate cut path the market has been waiting for.