Bitcoin Surges 6% to $106,000 After Iran Strait of Hormuz Tensions

Bitcoin recently experienced a significant rebound, surging beyond $106,000 after a period of volatility triggered by geopolitical tensions. The cryptocurrency had previously plunged below $100,000, reaching as low as $98,200 during the Asian trading session. This dramatic drop was sparked by news that Iran's parliament approved legislation to close the Strait of Hormuz, a critical route for global oil shipments. The potential closure of this vital artery sent shockwaves through energy markets, equities, and cryptocurrencies, reflecting the interconnected nature of global financial systems.

The rapid descent of Bitcoin below six figures was not solely due to technical market dynamics but also highlighted the increasing intertwining of cryptocurrencies with geopolitical risks. As tensions between Iran and Israel intensified, investors adopted a risk-off stance, leading to widespread sell-offs across digital assets. This event underscored the fragility of the market and the need for traders to adapt to an environment where geopolitical events can have immediate and significant impacts on digital asset prices.

The Hormuz crisis, while dramatic in its immediate impact, is the culmination of years of simmering tensions in the region. The Strait of Hormuz has long been recognized as one of the world’s most critical chokepoints for energy supplies. Any disruption in this region has the potential to spike oil prices, unsettle energy markets, and ripple through the global economy. The psychological impact of such disruptions extends globally, affecting major economies and financial markets.

Interestingly, the steep decline in Bitcoin’s price did not catch all observers by surprise. Noted crypto analyst Cas Abbe had cautioned just days earlier that Bitcoin could see a worst-case dip to the $93,000–$94,000 range if geopolitical tensions escalated. While Bitcoin’s price briefly bottomed at $98,200, the sharp correction lent credibility to such predictions. This situation paralleled market dynamics seen earlier this year, when Bitcoin suffered a delayed but severe selloff in the wake of U.S.–China tariff disputes. The parallels were not lost on seasoned traders, who braced for further turbulence.

By the time U.S. markets reopened, Bitcoin had managed to claw back above the $101,000 mark, suggesting resilience. However, market fragility remains beneath the surface. Technical indicators, such as an oversold Relative Strength Index (RSI) reading near 39.84 and a bearish Moving Average Convergence Divergence (MACD) signal, point to a market still struggling to find its footing. Analysts believe that while short-term volatility will dominate, medium-term prospects depend heavily on external headlines and broader risk sentiment.

Based on technical patterns and macro conditions, Bitcoin’s near-term trajectory remains uncertain. Analysts are watching for two key levels: short-term (3–7 days), where Bitcoin could trade between $98,000 and $95,000 as the market digests geopolitical developments and volatility persists. The possibility of a test near the $94,000 support zone cannot be ruled out. Mid-term (2–3 weeks), if buyers defend the critical $100,000 level and RSI trends higher, Bitcoin may attempt to recover toward the $102,000–$106,000 resistance band. Much will depend on how tensions in the Middle East evolve and how global markets respond.

The latest Bitcoin selloff highlights a fundamental shift in how digital assets respond to global events. While early crypto markets operated largely in isolation from traditional finance and geopolitics, today’s interconnected world means that Bitcoin and other major cryptocurrencies move in tandem with broader risk trends. Middle East conflicts, energy supply disruptions, and macroeconomic policy decisions now have the power to shape digital asset prices in real time. For traders, this means adapting to an environment where charts alone no longer tell the full story. Bitcoin has matured into a macro asset, no longer immune to the headlines that move oil, equities, and gold. Traders need to monitor geopolitics as closely as they do technical indicators.

As the world watches how Iran’s Supreme National Security Council responds, Bitcoin’s fate hangs in the balance. The psychological battle between bulls and bears is intensifying, with $100,000 serving as a symbolic and practical line in the sand. Whether Bitcoin rebounds decisively or sinks further will depend not just on price action but on the next headline from the Middle East. In this new age of crypto-geopolitics, traders must be prepared for swift, sweeping moves driven by factors well beyond the blockchain.