Bitcoin, crypto stocks fall on Middle East conflict escalation
Bitcoin dropped below $100,000 for the first time since May on Sunday.
Amid conflict escalation and macro uncertainty, crypto-adjacent stocks were down in early trading Monday, with Riot Platforms and MARA Holdings both tumbling around 2%, while crypto exchange Coinbase dipped premarket but has recovered most of those losses in early trading.
Bitcoin holding company Strategy is down slightly as well as the bitcoin holding company announced purchasing an additional “245 BTC for ~$26.0 million.”
bitcoin fell below $100,000 on Sunday for the first time since May. The asset has risen back to around $101,500 this morning.
Nic Puckrin, founder of Coin Bureau, told Sherwood News that Iran’s threats to close the Strait of Hormuz, which ferries nearly 20% of the world’s oil supply, drove the weekend’s declines.
“But this possibility is as devastating as it is unlikely — closing the Strait would be tantamount to economic suicide. Investors are reading this between the lines, which is why bitcoin quickly rebounded back above $100,000 overnight,” Puckrin said.
He added, “The long/short ratio right now is relatively balanced — 49.28%/50.72% in favor of the shorts — which suggests that some OG whales are selling, even as corporate treasuries, ETFs, and Michael Saylor are gobbling up this excess supply.”
