Bitcoin Drops as Iran Ceasefire Falls Apart and Oil Spikes to $75 — Here's What That Means for Crypto

WHY IT MATTERS

Think of the Strait of Hormuz like a major highway for oil tankers — if someone threatens to block it, the world worries about fuel shortages and rising prices. When oil gets more expensive, everything from gas to groceries can cost more (that's inflation). Central banks fight inflation by keeping interest rates high, which makes risky investments like crypto less attractive. So even though Bitcoin has nothing to do with oil directly, a geopolitical crisis halfway around the world can still push its price down because investors get nervous and move their money to safer places.