Israel-Iran war: Bitcoin rebounds to move past $1,00,000 mark despite Middle East tension; Where's it headed?
Bitcoin rebounded late Sunday, climbing back above $101,000 after earlier weekend losses, as investors reacted to U.S. and Israeli airstrikes targeting Iranian nuclear facilities.
The world's largest cryptocurrency gained alongside gold and oil futures indicating that traders anticipate a limited conflict rather than a prolonged geopolitical crisis.
Other cryptocurrencies also reacted in a similar manner. Although Bitcoin experienced a sell-off at the peak of the weekend news, traders made a comeback as risk appetite grew.
The U.S., in coordination with Israel, conducted an operation involving over 125 aircraft and bunker-buster bombs, targeting facilities at Fordow, Natanz, and Isfahan.
On Sunday, Bitcoin fell below the $99,000 level, marking its lowest point in over a month, while Ether saw a sharp decline of more than 10% at one stage. The broader cryptocurrency market reacted first to escalating geopolitical tensions, with Solana, XRP, and Dogecoin also experiencing significant losses, leading to a steep overall drop across the digital asset space.
Over $1.04 billion was invested in spot bitcoin ETFs between Monday and Wednesday last week, based on CoinGlass data. However, inflows sharply declined as the weekend approached, with no net change on Thursday and only $6.4 million added on Friday — a drop that coincided with former President Donald Trump's early exit from the G7 summit and the launch of a two-week U.S. review of policy options regarding Iran.
According to Avinash Shekhar, Co-Founder & CEO, Pi42, Bitcoin's rising dominance close to 63 percent reflects a clear shift in market sentiment as investors seek relative safety in the largest digital asset.
' The sharper fall in Ethereum and other altcoins compared to Bitcoin signals a risk-off approach from market participants amid global macro uncertainties and tightening liquidity. This phase highlights that institutional and retail capital is gravitating towards assets with stronger fundamentals and higher liquidity. At Pi42 we believe such market cycles are crucial reminders for investors to focus on quality projects with clear utility and long-term potential rather than chasing short-term market momentum,' Shekhar added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
32 minutes ago
- Time of India
Strait of Hormuz blockade looms: Asian countries most vulnerable to Iran's trump card
Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites. Around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through the strait per day -- representing around 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA). And crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran almost exclusively passes through the corridor. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your IQ Is 140 If You Can Answer 10 Of These Questions Correctly IQ International Undo Here are the main Asian countries where oil exported via the strait is destined: China More than half of the oil imported by East Asia passes through the Strait of Hormuz, experts estimate. Live Events China is one of the largest buyers, importing 5.4 million barrels of crude oil a day through Hormuz in the first quarter this year, according to the EIA. Saudi Arabia is China's second-largest supplier of crude oil, accounting for 15 percent of its total oil imports -- 1.6 million barrels a day. China also buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler. It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March. India India is highly dependent on the Strait of Hormuz, importing 2.1 million barrels of crude a day through the corridor in the first quarter, EIA data shows. Around 53 percent of India's imported oil in early 2025 came from Middle Eastern suppliers, particularly Iraq and Saudi Arabia, local media reported. Also Read: India safe from Strait of Hormuz closure due to diversified oil imports, says Hardeep Singh Puri Wary of an escalating conflict in the Middle East, New Delhi has increased its imports of Russian oil over the past three years. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks," India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Sunday. "We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," he wrote on X, adding "We will take all necessary steps to ensure stability of supplies of fuel to our citizens." South Korea Around 68 percent of South Korea's crude oil imports pass through the Strait of Hormuz -- 1.7 million barrels a day this year, according to the EIA. South Korea is particularly dependent on its main supplier Saudi Arabia, which last year accounted for a third of its oil imports. Seoul's trade and energy ministry said there have been "no disruptions so far in South Korea's crude oil and LNG imports" but "given the possibility of a supply crisis", officials were "planning for potential disruptions in the Strait of Hormuz". "The government and industry stakeholders have prepared for emergencies by maintaining a strategic petroleum reserve equivalent to about 200 days of supply," the ministry said in a statement. Japan Japan imports 1.6 million barrels of crude oil a day through the Strait of Hormuz, the EIA says. Japanese customs data showed 95 percent of crude oil imports last year came from the Middle East. The country's energy freight companies are readying for a potential blockade of the strait. "We're currently taking measures to shorten as much as possible the time spent by our vessels in the Gulf," shipping giant Mitsui OSK told AFP. Others Around 2 million barrels of crude oil passing through the Strait of Hormuz each day in the first quarter were destined for other parts of Asia -- particularly Thailand and the Philippines -- as well as Europe (0.5 million barrels) and the United States (0.4 million barrels). Limited alternatives Asian countries could diversify their oil suppliers, but it is difficult to replace the large volumes coming from the Middle East. In the short term, "elevated global oil inventories, OPEC+'s available spare capacity, and US shale production all could provide some buffer", experts at MUFG Bank said. "However, a full closure of the Hormuz Strait would still impact on the accessibility of a major part of this spare production capacity concentrated in the Persian Gulf," they said. Saudi Arabia and the UAE have infrastructure to bypass the strait, potentially mitigating disruptions, but their transit capacity remains very limited -- around 2.6 million barrels a day. And the Goreh-Jask pipeline built by Iran to export via the Gulf of Oman, which has been inactive since last year, has a maximum capacity of only 300,000 barrels per day, according to the EIA.
Business Standard
32 minutes ago
- Business Standard
Pound plunges to one-month low against dollar; GBPINR edges slightly higher
The British pound plunged to a one-month low against a firm dollar overseas as markets sentiments turned risk averse amid boiling tensions in Middle East and investor flocked to safe haven dollar for respite. The demand for the US Dollar as a safe-haven asset increased, with the US Dollar Index revisiting two-week high above 99 mark. Over the weekend, US President Donald Trump reportedly said that Washingtons military forces have successfully demolished Iranian nuclear facilities: Fordow, Natanz, and Isfahan. Meanwhile data from UK showed better-than-projected flash S&P Global Purchasing Managers Index (PMI) data for June. The Composite PMI came in at 50.7, higher than estimates of 50.5 and the prior release of 50.3. GBPUSD is currently seen quoting weaker by over half a percent at $1.3400. On the NSE, GBPINR futures are trading higher by 0.17% at 116.89.
Mint
43 minutes ago
- Mint
Mint Primer: Oil shock looms as Iran threatens to shut Strait of Hormuz. What it means for India
Next Story Business News/ Economy / Mint Primer: Oil shock looms as Iran threatens to shut Strait of Hormuz. What it means for India N Madhavan With 40% of its crude imports passing through the key waterway, India faces inflation and growth risks if Iran shuts off the Strait of Hormuz. Roughly one-fifth of daily global crude oil production transits the Strait of Hormuz. (Illustration: Reuters) Gift this article The risk of disruption to the global oil supply has risen sharply after the US bombed Iran's nuclear facilities early on Sunday. The risk of disruption to the global oil supply has risen sharply after the US bombed Iran's nuclear facilities early on Sunday. Mint looks at how prepared India is to deal with this situation as Iran threatens to shut down the Strait of Hormuz. Is an oil shock imminent? Immediately after the US attack on Iran's nuclear facilities in Fordow, Natanz and Isfahan, the Iranian Parliament voted to close the Strait of Hormuz, a narrow waterway that connects Persian Gulf to Gulf of Oman and Arabian Sea. It is through this waterway that a fifth of daily global crude oil production transits. The final decision now rests with Iran's Supreme National Security Council. If the waterway is indeed closed, global oil supply, especially crude produced in West Asia, will be disrupted, likely sending prices sharply higher. Will Iran actually shut the Strait? Historically, Iran has avoided blocking the Strait of Hormuz since 96% of its own oil exports — about 1.5 million barrels per day — pass through it. Shutting it down would cut off a vital revenue stream. But, as experts warn, the situation now is very different. Iran has been weakened militarily. Its proxies — Hamas, Hezbollah, and the Houthis in Yemen — are either finished or on life support. Worse, the survival of the Iranian regime itself may be at stake. Thus, Tehran may now see closing the waterway as its only remaining leverage. How will oil prices react? As markets opened on Monday, the benchmark Brent crude touched a five-month high of $81 per barrel before declining. Experts have forecast that crude oil prices could cross $90 per barrel and perhaps touch $100 if Iran shuts down the Strait of Hormuz. The US has already warned Iran against such action and urged China — whose oil imports heavily rely on Hormuz — to intervene. How will this impact India? Almost 40% of India's crude oil imports, roughly 2 million barrels a day, pass through the Strait of Hormuz. Its closure will cause a supply shock, at least temporarily, till supply is increased from other sources. But the bigger worry is the oil price spike. Crude prices at $100 a barrel for a sustained period of time could stoke inflation, stall the nascent consumption revival, and drag down economic growth. Bank of Baroda Research estimates a 20 basis point downside risk to GDP growth if prices average $80 per barrel this year. How is India preparing to mitigate the impact? India, the third largest oil importing and consuming nation in the world, has been steadily diversifying its source of imports in recent months. Its imports from Russia rose sharply in June to 2.2 million barrels per day. This is almost double the combined imports from Iraq, Saudi Arabia and Kuwait. Imports from the US have also risen while those from West Asia have almost halved. Import from Russia and the US will not be affected by closure of Strait of Hormuz. It can also tap into its strategic oil reserve if there is a shortfall. Topics You May Be Interested In Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.
