Bitcoin and Ethereum prices dropped on Friday as tensions rose in the Middle East. The market reacted after Iran signaled tighter control over the Strait of Hormuz, a key global shipping route.
Bitcoin fell by more than 4%, trading around $66,000. Ethereum also dropped by a similar margin, slipping below $2,000 as investors pulled back.
The decline came after two Chinese-linked container ships moved toward the Strait of Hormuz before suddenly turning back near Iranian waters. The ships are linked to COSCO Shipping.
Iran’s Revolutionary Guard said it had forced multiple ships to leave the area. It also warned that vessels linked to countries aligned with the United States and Israel would not be allowed to pass through the strait.
Reports suggest Iran is now controlling how ships move through the region. Some vessels may need approval or must follow routes monitored by Iranian forces. This has raised concerns about global trade and oil supply.
The Strait of Hormuz is one of the world’s most important shipping lanes. Any disruption there can affect energy prices and financial markets across the globe.
As uncertainty grew, investors moved away from riskier assets like crypto. This caused a broader market dip, with traders reacting quickly to the rising geopolitical risk.
There were also unconfirmed claims online about attacks on ships in the area. However, major reports have not verified those incidents so far.
For now, markets remain cautious. If tensions continue to rise, both crypto and global assets could face more pressure in the coming days.
