Bitcoin surged past the $105,000 mark as escalating geopolitical tensions in the Middle East triggered a flight to alternative assets. The price movement occurs following Iran’s move to block the critical global oil shipping route, the Strait of Hormuz.
Heightened concerns over a potential oil supply shock have analysts forecasting oil prices could spike as high as $120 per barrel. This anticipated surge has fueled broader anxiety about rising inflation, driving increased demand for traditional safe havens like gold and bitcoin.
The prospect of disrupted global oil supply chains due to Iran’s control over the strait has led to warnings from experts that Brent crude could reach $120-$130 per barrel if the passage remains closed.
Amid this uncertainty, market participants are also closely watching the upcoming interest rate decision from the Federal Open Market Committee. While no immediate change in rates is widely anticipated, investors await Federal Reserve Chair Jerome Powell’s commentary for guidance on future monetary policy.
Bitcoin’s trading pattern between $103,000 and $105,000 indicates a period of consolidation within volatile conditions. This price action underscores its perceived role by some investors as a digital hedge against both inflation and geopolitical instability.