Strait of Hormuz Tensions Send Shockwaves Through Crypto Markets

Geopolitical tensions surrounding the Strait of Hormuz have investors on edge, and it's affecting cryptocurrency markets. The uncertainty has led to a mixed bag of results for major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP.

However, two smaller altcoins, Cardano (ADA) and Hyperliquid (HYPE), outperformed the pack, with ADA rising over 4% and HYPE up more than 3% in the last 24 hours. In comparison, Bitcoin traded 1% higher, Ethereum gained 0.3%, and XRP was 0.2% higher.

The split came as U.S. President Donald Trump said talks were underway with Iran, calling them Tehran's 'last chance' to reach a deal. However, Iran quickly rejected those claims, saying there have been no talks with the United States. The conflict started in late February, when the U.S. and Israel launched Operation Epic Fury against Iran.

Analysts believe institutions may be shifting towards Ethereum, as Italian banking giant Intesa Sanpaolo trimmed its exposure to BlackRock's iShares Bitcoin Trust (IBIT) while adding to the iShares Ethereum Trust (ETHA/ETHB). 'Banks are selling Bitcoin and buying Ethereum,' wrote Ash Crypto.