What Effect Does Strait of Hormuz Has in Bitcoin?

[puloweh555]

My question is, does the Strait of Hormuz has a control in the movement of bitcoin?

When we talk about tensions in the Strait of Hormuz, I speculate that it will have a big influence on the price of Bitcoin, I speculate that the Strait of Hormuz will influence global inflation, the spike in oil prices is also the real reason for its influence on the price of Bitcoin.

Not to mention the concerns of investors, where they can at any time move Bitcoin assets to other places, Bitcoin can be considered risky, the positive thing about Bitcoin is the tensions in the Strait of Hormuz, paying cross fares is possible with Bitcoin payments, if that happens it will certainly form a unique sentiment, especially for Bitcoin.

The impact of tensions on the Strait of Hormuz cannot be underestimated for Bitcoin.

Yes, I also agree with you. Bitcoin does have its own trend in price movements, for example when it comes to halving. But we also shouldn’t forget that Bitcoin price movements are also affected by economic sentiment, especially since the Strait of Hormuz can be considered a central or important route in the world and any issues there will impact many aspects of the global economy including inflation. 

That said, sometimes economic and geopolitical sentiments like disruptions in the Strait of Hormuz can indeed influence Bitcoin price in the short term because problems there will affect inflation, the global economy, and many other things as you mentioned, which in the end makes many investors want to move their assets. But usually that influence is temporary, and after the shock subsides Bitcoin price tends to return to following its trend or halving dynamics.

[yixichloro2xx]

Agreed, one of the trickiest aspects of biting the Bitcoin trading bullet is the timing. It is often easy to know the direction, but determining when to buy or sell is more difficult. For example, the Strait of Hormuz. A region of potential geopolitical tension, can affect oil prices, inflationary expectations. Liquidity in the market, and therefore the sentiment of the Bitcoin market. Although not necessarily right away. Bitcoin can trade ahead of, or behind, the traditional market and predicting the short term is even harder. It's why I believe it's better to just attempt to hit the shot. Rather than trying to see every shot that is made. It's better to have an exit and entry strategy rather than a constant push for the market. Often the most challenging part of the process is just deciding when to stop.

Things are certainly different now. The US has absolute control over the Strait of Hormuz, which isn't easy because they're so far from home. Even so, this has been the trigger for the war.

In fact, the US is dominating everything: routes, military bases on the Strait of Hormuz. It's like a dynamic; something could explode at any moment, and I hope that doesn't happen.

US has no control over the strait of Harmouz. It is still controlled by the Iranian missiles and drones. If the US has control like you said, then ships will pass through easily and the price of crude oil would have also dropped. The strait of harmouz was opened and free to pass through, until the US began their unnecessary bombing Which resulted into the closing of the Harmouz. The Washington are joking, naming the strait of harmouz as a territory of the USA.

The longer this tension continues, the higher crude price and low supply which will affects the global economy. This will surely lead to higher inflation and during this period, big investors (whales/institutions) would want to divert their money into low risks risk assets till the tension reduces. Which is why alot of them sell of their holdings.

[citywise2]

Bitcoin is not in isolation from the economic market but however we seem not to accept that fact that bitcoin made a shift years ago or year ago when it became politically friendly but however in today whatever affects all other assets in the market affects bitcoin too, so don’t be surprised that bitcoin reacts to whatever news because it’s traded by individuals whose lives are running on the economic market so they buy more at every buyable news and sell more at sellable news making the buying and selling price the reaction of bitcoin to the news but generally it (straits of Hormuz ) has nothing to do with bitcoin.

You have at one hand admitted that rise and fall in the price of Bitcoin is linked to anything out there that can jolt the economy or the financial market and on the other hand admit that it doesn't. What is fact is that Bitcoin is not isolated from other economic factors so whatsoever affects the economy goes to affect Bitcoin even though that can be momentary, that is to say the overall trend stays intact.

[danadc]

US has no control over the strait of Harmouz. It is still controlled by the Iranian missiles and drones. If the US has control like you said, then ships will pass through easily and the price of crude oil would have also dropped. The strait of harmouz was opened and free to pass through, until the US began their unnecessary bombing Which resulted into the closing of the Harmouz. The Washington are joking, naming the strait of harmouz as a territory of the USA.

The longer this tension continues, the higher crude price and low supply which will affects the global economy. This will surely lead to higher inflation and during this period, big investors (whales/institutions) would want to divert their money into low risks risk assets till the tension reduces. Which is why alot of them sell of their holdings.

Sure, that's how you say it, but the news reports say that, for example, that they already have the location of the mines they have and that they have been eliminated by US forces. I don't really think the US has total control, because if that were the case there wouldn't be so much resistance and the Pentagon would have already said that they have everything under control. Rather, I say that this type of news is sensationalist to keep the morale of US soldiers high.