Hormuz Closure Sparks Crypto Chaos Amid Oil Supply Risks
Iran's decision to close the Strait of Hormuz has sent shockwaves through global markets, with oil supply routes threatened by the move. The waterway accounts for 20% of global daily consumption.
The closure led to a surge in crypto derivatives trading, with $1.8 billion in sell volume recorded as traders adjusted their positions amid rising tensions. However, despite the unrest, the crypto market cap rose by 1.49% to $2.33 trillion.
Global markets were already volatile following US and Israeli strikes on Iran on February 28 and subsequent missile exchanges across the Gulf region. Ebrahim Jabari, a senior adviser to the commander-in-chief of Iran's Islamic Revolutionary Guard Corps, warned that any vessel attempting to transit the waterway would be set on fire.
The market's Fear & Greed Index remains in fear at 20, indicating a bearish sentiment. Oil traders assessed possible supply disruptions, while cryptomarkets recorded heavy derivatives activity before stabilizing later in the session.