Ethereum Whales Remain Divided – What Lies Ahead for ETH Investors?

Bitcoin price dropped to $99,800 after Iran’s parliament approved a proposal to close the Strait of Hormuz. The move follows the US bombing of Iran’s nuclear sites yesterday. 

With final approval pending at the Supreme National Security Council, markets brace for heightened energy disruption risk. As Hormuz is critical to the world’s oil supply, a macro shock of this level could notably disrupt the crypto market. 

Impact of Potential Hormuz Shutdown

In addition to Bitcoin, Ethereum fell 4% under $2,200, and XRP dropped below $2 for the first time since April. Crypto liquidations hit $950 million in the past 24 hours, reflecting deep risk-off sentiment.

But why? The Strait of Hormuz channels nearly 25% of global oil shipments. Closing this chokepoint would tighten global energy supply immediately. 

Oil prices could surge, stoking inflation and delaying central bank rate cuts.

Consequently, higher energy costs would ripple through economies. Consumers face steeper fuel bills, while businesses grapple with rising transport and production expenses. 

In response, investors typically flock to safe-havens like US Treasuries and the dollar, draining capital from risk assets such as crypto.

Moreover, energy-driven inflation pressures would challenge the Federal Reserve’s 2% target. If the Fed signals further tightening, real yields could rise. 

Historically, higher real yields weigh on Bitcoin by raising the opportunity cost of holding non-yielding assets.

Crypto Market Risks and Macro Linkages

Crypto’s recent sell-off reflects broader market stress. Liquidations concentrated in long positions across Bitcoin and Ethereum. Rising VIX and widening Treasury yield spreads signal tightening risk budgets.

Additionally, hedge funds and retail traders often use leverage in crypto. Sharp price moves trigger margin calls, amplifying declines. 

With current leverage metrics elevated, further downside remains likely if uncertainty persists.

At the same time, dollar strength usually correlates with crypto weakness. A surge in the US Dollar Index could deepen Bitcoin losses, potentially pushing it towards $95,000.

Outlook and Key Indicators

Traders should watch three developments closely:

• SNSC Decision: Final vote on Hormuz closure.
• Oil Prices: Breaks above $100/barrel could exacerbate inflation.
• Fed Signals: Comments on rate policy in response to energy shocks.

In sum, Iran’s potential closure of the Strait of Hormuz elevates macro risks for crypto. 

If approved, expect sustained pressure on Bitcoin and broader digital-asset markets until geopolitical clarity and energy stability return.

The post Bitcoin Drops Below $100,000 as Iran Moves to Close Strait of Hormuz appeared first on BeInCrypto.

HashKey Group Chairman and CEO Xiao Feng kicked off the 2025 Hong Kong Web3 Festival on Sunday with a keynote address highlighting blockchain technology’s transformative impact on global financial infrastructure.

Speaking to an early morning crowd at the Hong Kong Convention and Exhibition Center, Xiao described blockchain as “a new generation of financial infrastructure” that fundamentally changes how financial transactions are recorded, settled and governed.

Industrial Revolution Requires Financial Innovation

“Any industrial revolution must wait for a financial revolution,” Xiao told attendees at the four-day event hosted by his company.

Xiao emphasized historical parallels between technological and financial evolution: banking credit supported the British Industrial Revolution, stock markets enabled the electrical revolution in America, and venture capital fueled Silicon Valley’s information revolution.

“Cryptocurrency finance will become the core financial innovation supporting the fourth industrial revolution.”

The executive highlighted key differences between traditional and blockchain-based finance, including the shift from bank accounts to digital wallets and the move from batch settlement systems to instantaneous transaction completion.

Regulatory Changes and Market Evolution

Xiao noted the significance of the U.S. Securities and Exchange Commission’s recent decision not to classify dollar-backed stablecoins as securities, suggesting this allows more institutions to participate in monetary creation processes.

He also pointed to major stock exchanges moving toward 23-hour trading cycles, compared to blockchain markets that operate continuously.

“Traditional exchanges will eventually need to adapt to compete with cryptocurrency markets that have operated 24/7 since day one,” Xiao predicted.

Hong Kong’s Strategic Role

The event features several high-profile regulators, including Paul Chan Mo-po, Financial Secretary of the Hong Kong Government; Joseph H. L. Chan, Under Secretary for Financial Services and the Treasury; Christina Choi, Executive Director of Investment Products at the Securities and Futures Commission; and George Chou, Chief Fintech Officer of the Hong Kong Monetary Authority.

While mainland China maintains strict prohibitions on cryptocurrencies, analysts view Hong Kong’s supportive stance as a strategic testing ground for the technology’s potential. This approach effectively creates a regulatory breathing space where blockchain innovations can develop under controlled conditions, potentially informing future policies across the broader Chinese economy.

The Web3 Festival continues through Wednesday with industry panels, demonstrations and networking events, bringing together blockchain developers, investors and technology enthusiasts from around the world.

The post Blockchain Financial Innovation Critical for Next Industrial Revolution, Says HashKey Chair appeared first on BeInCrypto.

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