Uncertainty in the Strait of Hormuz affects Bitcoin prices

Recent developments in the Middle East have caused fluctuations in cryptocurrency markets. With hopes regarding the openness of the Strait of Hormuz fading and disputes between the parties intensifying, investors have begun to move away from risky assets. The price of Bitcoin fell by 0.13 percent in recent trading to $64,000. Ethereum is trading at the $1,876 level, down 0.15 percent.

The Hormuz tension between Iran and the US continues to dictate the direction of the markets. US President Donald Trump's communication of war reparation demands to Iran and the Tehran administration's counter-conditions have raised tensions in the region. The lack of progress toward a consensus between the parties has led to an increase in energy market prices. Rising oil prices are fueling concerns that they could increase global inflationary pressure and bring the possibility of interest rate hikes by the US Federal Reserve back onto the agenda.

Tickmill Group analyst Patrick Munnelly stated that the rise in oil prices has increased market tension ahead of the US inflation data to be released on Wednesday.

HEAVY OUTFLOWS FROM SPOT BITCOIN ETFS IN THE US

This weakness in crypto assets has also been reflected in fund capital movements. According to data provided by SoSoValue, a total of $145 million in net outflows was recorded from spot Bitcoin ETFs trading in the US on August 10. On the same day, $14.59 million in net outflows was recorded from spot Ethereum ETFs.

In contrast to the general outflow trend in crypto funds, the Grayscale Bitcoin Mini Trust became the Bitcoin ETF that attracted the most investment of the day with $37.06 million in net inflows. On the Ethereum side, the Grayscale Ethereum Mini Trust stood out among Ethereum products by receiving $8.59 million in inflows.

It is estimated that geopolitical risks and volatility in the energy market will continue to affect cryptocurrency markets in global markets.

News Source: 12punto