Closing Strait of Hormuz is biggest risk to BTC price this weekend — Analyst
Risk assets would take a significant hit if Iran closes the Strait of Hormuz, a narrow waterway supplying 20% of the global oil trade.
The price of Bitcoin (BTC) remains resilient, despite the recent Israeli airstrike on Iran, but could see a sharp correction in the short-term if Iran closes the Strait of Hormuz — a critical route for oil shipments — impacting all risk-on assets, according to Coin Bureau founder and market analyst Nic Puckrin.
Bitcoin’s short-term price action “depends on how things develop today and over the weekend,” in the Israel-Iran conflict, the analyst wrote on Friday, adding:
However, Puckrin stressed that Bitcoin’s long-term price outlook is less influenced by geopolitics and more tied to the declining value of the US dollar, which just hit its lowest level in three years — suggesting long-term upside for the supply-capped asset.