BTC slides below $64,500 as Iran dashes Hormuz hopes
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- Bitcoin dropped to $64,447 on Bitstamp after Monday's Wall Street open, its lowest level since Friday, as markets weighed renewed US-Iran uncertainty over the Strait of Hormuz reopening.
- Iran's Islamic Consultative Assembly deputy speaker Ali Nikzad stated that "the opening of the Strait of Hormuz has no military solution," deflating hopes for a swift reopening of the key oil route.
- US WTI crude oil spiked nearly 5% to $80.90 per barrel on the same Hormuz pessimism, while the S&P 500 initially fell before reversing to trade green, still below Friday's record highs.
- The Japanese yen weakened to USD/JPY 159, nearing the 160 psychological boundary, despite an earlier joint intervention by Japan and the US; economist Mohamed El-Erian warned Japan needs more decisive policy action to fix the currency "mispricing."
- US spot Bitcoin ETFs recorded $865.3 million in net inflows last week, which onchain analytics firm Glassnode described as "exceptionally strong," though it flagged weak centralized exchange turnover as a missing piece for sustainable recovery.
- Hedge funds flipped net long on CME Bitcoin futures for the first time in years, an event CryptoQuant CEO Ki Young Ju called "rare," noting the basis trade had kept institutional players structurally short for years.
Why it matters: Bitcoin's near-term direction is now driven by geopolitics rather than crypto-specific catalysts, with a single Iranian statement moving WTI crude 5% and BTC back below $64,500. Yet $865 million in spot ETF inflows shows institutional demand is quietly accumulating, while Glassnode warns spot turnover remains too thin for a sustainable breakout beyond the current consolidation regime.
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