Bitcoin Dips Below $100,000 Amid Rising Geopolitical Tensions; XRP, ETH, and SOL Follow

Bitcoin fell beneath the $100,000 mark on Sunday, hitting its lowest level since early May. This decline reflected growing risk aversion on Wall Street ahead of Monday’s trading session, triggered by reports that Iran is considering closing the Strait of Hormuz.

The Strait of Hormuz, situated between Oman and Iran, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, facilitating roughly 20% of the world’s oil shipments.

News that Iranian officials are contemplating blocking the Strait sparked fears of a sharp spike in oil prices at the start of the week.

“Following U.S. strikes on Iran overnight, over 50 large oil tankers scrambled to exit the Strait of Hormuz. While markets were closed, an immediate supply disruption is expected to push prices higher. JPMorgan has called this their worst-case scenario amid the Israel-Iran conflict,” noted The Kobeissi Letter on X.

JPMorgan analysts warned that in such a scenario, oil prices could surge to $120-$130 per barrel, potentially driving U.S. inflation up to 5%—the highest since March 2023 when the Federal Reserve was actively raising interest rates.

The pressure on Bitcoin weighed heavily across the broader cryptocurrency market. Major altcoins such as XRP, SOL, and Ethereum’s ETH also suffered losses. Payments-focused XRP dropped 6% to $1.935, its lowest since April 10. Ether declined to levels last seen in early May, according to CoinDesk data.