US Carried Out ‘Most Powerful Bombing Raid’ on Iran’s Kharg Island: When Will BTC React?

2 hours ago 2

BTC has remained relatively stable for now, but it tends to react once the futures and legacy markets open.

The US military forces launched a massive attack against one of Iran’s key regions, Kharg Island, which is reportedly responsible for 2% of the global oil supply.

Although the POTUS said he intentionally chose not to bomb any oil infrastructure on the island, he threatened that he might reconsider his decision should Iran “do anything to interfere with the free and safe passage of ships through the Strait of Hormuz.”

The New Attack and BTC Reaction

Trump described the attack as the “most powerful bombing raids in Middle East history.” Although it’s a relatively small island, it is estimated that it manages around 90% of Iran’s crude oil exports and 2% of the global oil supply.

According to the analysts from the Kobeissi Letter, this is a “MAJOR escalation for oil markets.” However, the attack was carried out hours after (almost) all financial markets closed, so the damage has been limited so far. USOIL closed on Friday at just under $100, which is still lower than the Monday peak of nearly $120.

The consequences for bitcoin have also been rather negligible so far. The asset was rejected at $74,000 yesterday, but it remained relatively stable at around $70,000-$71,000 after the attacks. However, similar developments during previous weekends impacted BTC once all other financial markets opened on late Sunday or early Monday. As such, more volatility is probably expected tomorrow evening.

Sentiment Changes

The analytics company Santiment noted that the crowd optimism about the potential ending of the military conflict in the Middle East skyrocketed earlier this week when Trump claimed again that the US was “winning very decisively.” However, the subsequent actions, continued military operations, and new hits have evaporated this optimism.

The analysts said that social dominance around words like ‘war,’ ‘conflict,’ ‘battle,’ or ‘tensions’ is on the rise again, especially since the US and Israel have seemingly different scenarios on how they would like the situation to unfold.