Bitcoin is holding steady around $63,800, experiencing minimal fluctuations despite the U.S. conducting its third round of airstrikes on Iran this week and Tehran's announcement of the closure of the Strait of Hormuz.
Alongside Bitcoin, other significant cryptocurrencies such as ether, XRP, and dogecoin have also seen only minor price adjustments, reflecting a subdued market response to the escalating tensions in the Middle East.
With oil, stocks, and bonds markets closed for the weekend, Bitcoin remains one of the few assets reacting to the latest developments in real time. A more comprehensive market response in crude oil is expected when trading resumes on Monday.
The U.S. has targeted Iran again while the Strait of Hormuz faces closure
On Saturday, Bitcoin traded near $63,800, down 0.3% in the last 24 hours, but up by 2% for the week. This stability comes as the U.S. executed its third strike against Iran and the Iranian government declared the Strait of Hormuz closed "until further notice."
Vessel-tracking data indicated some activity in the Strait of Hormuz during the early hours on Sunday in Asia, although traffic remained significantly below normal levels.
According to U.S. Central Command, President Trump ordered the airstrikes aimed at diminishing Iran's capability to assault commercial vessels following an attack by Iranian forces on a Cyprus-flagged container ship. Reports from Iranian state media mentioned explosions near strategic locations along Iran's southern coastline, including energy centers like Bushehr and Asalouyeh, as well as the port cities of Bandar Abbas and Bandar-e Dayyer.
Ether also displayed little movement, trading at approximately $1,800 and reflecting a 2% increase over the week. Among major cryptocurrencies, Solana saw the largest decline at $76, down 5% over the past week, while XRP fell to $1.09 and dogecoin decreased to about $0.07. Daily changes for these cryptocurrencies were minimal.
The current lack of response in the market is noteworthy. When Iran initially closed the Strait of Hormuz in early March, Brent crude oil prices surged past $100 per barrel for the first time in four years, ultimately peaking near $120, while Bitcoin experienced significant sell-offs during each escalation.
Timing plays a role in this muted reaction, as traditional markets for oil, equities, and bonds are closed over the weekend, leaving Bitcoin as the primary market reflecting the real-time impact of the strikes. Its behavior suggests that the strikes are being perceived as a non-event.
A more pronounced reaction across various asset classes, especially in crude oil, might not materialize until Monday. Approximately 20% of the world's oil trade traverses through the Strait of Hormuz, and Brent crude had already priced in some risk ahead of the weekend due to reduced tanker traffic through the strait.
The actual test will occur on Monday if crude oil reopens with a significant price increase while Bitcoin maintains its position. A stable opening for oil may indicate that the closure of the strait is being interpreted as a threat that Tehran has previously issued but not followed through on.