Crisis in the Middle East drives volatility in the cryptocurrency market
The military escalation between Iran, the United States, and Israel, along with the closure of the strategic Strait of Hormuz, has generated a strong reaction in international financial markets, including the cryptocurrency ecosystem, which is facing a period of high volatility and uncertainty.
The Strait of Hormuz is a key artery for global energy trade, through which approximately one-fifth of global oil passes. Its closure has heightened fears of a prolonged disruption in energy supply, causing sharp movements in risky financial assets, including Bitcoin and major cryptocurrencies.
Initial reaction of the crypto market
Historically, major geopolitical events generate an immediate cautious reaction among investors. In this context, the cryptocurrency market tends to experience massive short-term sell-offs, as many i
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