Key Highlights
- Cryptocurrencies, such as Bitcoin, Ethereum, and XRP, fell due to geopolitical tensions associated with the Strait of Hormuz closure.
- Overall markets showed signs of weakness, with the CoinMarketCap 20 Index falling more than 2.8% within 24 hours.
- Increased tensions between Iran and the United States created a risk-off sentiment in global markets.
The cryptocurrency markets registered a dip on April 18, 2026, due to geopolitical tensions that arose from the closing of the Strait of Hormuz, an important passage for oil worldwide. The event led to risk-off sentiment and affected the performance of top digital currencies.
Iran has closed the Strait of Hormuz once again, referring to the decision as a response to a continued blockade of its ports by the US, as reported by Al Jazeera.
Based on data from CoinMarketCap, the CoinMarketCap 20 Index (CMC20) was at $154.99, indicating a decrease of 0.07% in the last hour and 2.83% in 24 hours.
Bitcoin (BTC), the biggest cryptocurrency in terms of market cap, recorded a price of $75,891.40, a fall of 0.14% in the last hour and 1.95% in 24 hours. Market cap was around $1.52 trillion, backed by the trade volume of over $30 billion over the last 24 hours.
Ethereum (ETH) was valued at $2,361.22, indicating a fall of 0.29% in the last hour and 3.03% over the day. XRP was valued at $1.43, with a decrease of 0.30% in the last hour and 3.94% over 24 hours but an increase of 5.87% over the week.
Stable coins such as USDT and USDC were seen trading at parity values of $1.00 and $0.9996, respectively. This was meant to provide a liquidity cushion during the move. BNB was quoted at $633.07 and experienced small losses on the hourly and daily charts.
More liquidation in the market
According to the latest data provided by CoinGlass on its liquidation heatmap, total liquidations in the past 24 hours amounted to $263.50 million, impacting 161,235 traders. More losses were observed from long positions, as $192.06 million in liquidation came from them, whereas only $71.44 million came from short positions.
BTC led all coins in terms of total liquidations, amounting to $62.00 million, followed by RAVE with $38.93 million and ETH with $47.02 million. Others accounted for $31.89 million in liquidation. Total long liquidations in the past 24 hours totaled $192.06 million, and short liquidations amounted to $71.44 million.
Geopolitical tensions affecting the market
The Strait of Hormuz, which accounts for about 20-30% of all oil traded through maritime routes globally, has recently become the center of controversy between Iran and the US in recent times. There have been reports of the blockage of the strait, increasing the concern regarding supply problems, sending the price of oil up at times, and strengthening the dollar.
Cryptocurrencies, which are considered to be risky assets at times of geopolitical tension and uncertainty, came under sell-off as traders moved towards safer assets or cash. Previously, geopolitical events in the region had impacted cryptocurrencies indirectly via factors such as inflation expectations, energy costs, and market sentiment.
However, the market reacted positively yesterday when the news of the opening of the passage circulated over the market.
Situation may influence the future moves
Further events taking place in the Middle East may cause further short-term fluctuations in the crypto market. Even though cryptocurrency is considered a possible hedge when there is extended volatility, the current move shows similarities with what is happening in equities and traditional stocks.
The situation in the Strait of Hormuz may influence future moves, as oil prices, the US dollar, and even statements from the government may provide new signs to follow. As per the data available at the moment, we have consolidation and weakness in the major cryptos.
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