The cryptocurrency market continues its decline, led by Bitcoin. This drop comes after US President Donald Trump’s harsh statements regarding Iran and the Strait of Hormuz.
US President Donald Trump threatened yesterday to attack Iran’s energy infrastructure if it does not reopen the Strait of Hormuz within 48 hours. Following Trump’s statement, Bitcoin ($BTC) and altcoins, as well as gold and silver, experienced declines.
Gold fell to around $4,100, while silver dropped to $61.8. Bitcoin and altcoins also continued to decline, with $BTC falling to around $67,000. Major altcoins such as Ethereum (ETH), Solana ($SOL), and $XRP also experienced significant drops.
This situation has driven highly liquid investors away from cryptocurrencies. According to the data, highly liquid investors preferred commodities over $XRP and $SOL during the downturn.
According to CoinDesk, investors on the decentralized exchange (DEX) Hyperliquid are more actively trading commodities like oil and silver than cryptocurrencies like $XRP and $SOL.
In the last 24 hours, the total trading volume of perpetual futures contracts for West Texas Intermediate (WTI) and Brent crude oil exceeded $500 million.
This figure for oil surpassed the trading volumes of $SOL and $XRP perpetual futures contracts, which stood at $176 million and $31 million respectively.
Indeed, Brent and WTI crude oil prices have risen by more than 45% this month. This rise resembles the kind of return typically seen in more speculative memecoins. This surge in crude oil prices, pushing oil above $100 per barrel, has triggered inflationary shocks.
Analysts say this trend among investors reflects a resurgence of interest in the commodities sector amid increased price volatility due to geopolitical instability related to the war in Iran.
*This is not investment advice.
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