Strait of Hormuz Closure Sparks Bloodbath: How Deep Will Crypto Go?

The cryptocurrency market is about to blast-off as if it is perched on the edge of a cliff. Tensions in the Middle East are spiraling out of control, and this time, it's not just oil or stocks that are at risk—crypto could be the next casualty. The Strait of Hormuz closed crypto impact is already being felt in real time.

In a chilling new development, Iran has threatened to close the Strait of this port, a narrow chokepoint that carries almost 1/4th of the world’s oil. If that happens, forget $70 oil—we could see prices skyrocket to $150/barrel, and with it, a full-scale market crisis. The Strait of Hormuz closed scenario is no longer unthinkable—it's on the verge of reality.

Iran Threatens to Shut Down Oil Lifeline

On June 14, political commentator Ed Krassenstein posted on X (formerly Twitter), stating:

“The Iranian Parliament says Iran is seriously looking at a possible closure of the Strait of Hormuz due to Israel's attacks.”

Source: Ed Krassenstein X

The statement echoes rising concerns that the country may retaliate against Israel’s military actions by shutting the Strait, through which nearly 24% of the world's oil supply flows daily. That’s not just petroleum—it’s lifeblood for the global economy. As per Krassenstein, if this happens, oil prices could soar past $100–150 per barrel, igniting inflation and economic strain across the U.S. and beyond.

Further confirming the seriousness, IRGC General Ismael Kowsari, quoted in Iranian state-run outlets, stated,

“Closing the Strait of Hormuz is on the table.”

Source: Current Report X Account

This escalates geopolitical risk to an alarming level. And when oil becomes volatile, so does everything else—including cryptocurrency. The Iran Israel war is no longer limited to traditional markets ; it’s triggering the Strait of Hormuz closed crypto impact across digital assets too.

Bitcoin Stable, Altcoins in Panic Mode

As these war rumors swirl, the crypto market cap is seeing a downturn with 0.58% decrease, while 24-hour trading volume has plummeted by 44.86% to $95.6 billion, according to CoinMarketCap. That kind of liquidity drop indicates market hesitation and panic exits.

Bitcoin (BTC) has lost about 1% since the war began, but it's the altcoins that are truly suffering. Solana (SOL), XRP, and Cardano (ADA) have seen drops of 7–10% over just a few days. Specifically, XRP has fallen 0.87% in the past week alone, per CoinMarketCap data.

The reason? Risk. Altcoins are more volatile and less liquid than Bitcoin, so during uncertain times like this, investors pull out of altcoins first. The altcoins crash June 2025 is a direct outcome of the Strait of Hormuz closed by Iran risk.

What Do Analysts Say? Javon Marks Sees Hope in Bitcoin’s Chart

Despite the chaos, not everyone is bearish. Crypto analyst Javon Marks, known for his chart-based predictions, recently posted a technical breakout scenario for Bitcoin on X. He noted that this correction could just be a retest before a massive move toward $112,000.

Source: JAVON MARKS

“This could only be a simple breakout retest in Bitcoin before a move to $112,000 and higher!” – Javon on X

If this turns out to be true, it may signal a temporary pullback before a bigger bull wave—one that typically leads into “altcoin season”, where tokens like ETH, SOL, and ADA historically rally after Bitcoin makes its move. Still, market crash fears driven by oil price impact on crypto persist in the short term.

Two Futures Ahead: Collapse or Comeback?

We’re standing at a fork in the road:

1. If Iran does close it: Expect full-scale financial panic. Crypto could see its sharpest drop in months, especially altcoins.

2. If tensions de-escalate: Relief rallies may start, with Bitcoin taking the lead, followed by a powerful altcoins rebound.

Having worked in the crypto industry for a long time, I can assure make no mistake—this isn't a normal dip. This is war-fueled volatility. The rules are different now. The Strait of Hormuz news is triggering panic from oil markets to digital assets, showing us how deeply connected these systems are.

Final Thoughts

When major choke points like the Strait of Hormuz come under threat, it's not just oil traders who panic. The ripple effect hits global equities, inflation indexes, and the crypto market too. Right now, all eyes are on Iran’s next move, as the Hormuz closed scenario could send Bitcoin and altcoins into deeper volatility .

Whether it’s XRP Solana Cardano drop, the Iran oil war crypto impact, or just another Bitcoin crash, the truth is clear: The Strait of Hormuz crypto impact is real and unfolding now.