 ▲ A warship is passing through the Strait of Hormuz on the 1st (local time) |
As of the morning of March 2, the cryptocurrency market is experiencing extreme volatility and heavy downward pressure due to escalating geopolitical tensions in the Middle East.
According to CoinMarketCap at 9:03 a.m., the total cryptocurrency market capitalization stood at $2.27 trillion, down 1.49% from 24 hours earlier. The Fear and Greed Index, which reflects overall market sentiment, remained at 16, indicating a state of “Extreme Fear” and showing that investor confidence has sharply deteriorated.
Bitcoin (BTC), the market leader, was trading at $65,809.65, down 1.77% from the previous day. Major altcoins also remained weak. Ethereum (ETH) fell 1.32% to $1,939.83, while XRP (Ripple) declined 1.83% to $1.35. Solana (SOL) and Dogecoin (DOGE) also dropped 0.99% and 2.32%, respectively, reflecting the overall market downturn.
The decline comes as global financial markets are being shaken by the aftermath of weekend attacks on Iran by the United States and Israel. Bitcoin plunged to the $63,000 level immediately after the airstrikes, then briefly recovered to around $68,000. However, with the opening of traditional financial markets, risk-off sentiment resurfaced, placing renewed downward pressure on prices.
Global capital is rapidly moving into safe-haven assets. The Swiss franc and Japanese yen are strengthening, while gold prices—another traditional safe haven—are expected to see significant gains. Above all, concerns over potential Iranian retaliation have thrown the Strait of Hormuz, a critical artery for global oil shipments, into turmoil, sending international oil prices sharply higher.
Experts warn that if the surge in oil prices reignites global inflation, expectations for interest rate cuts by the Federal Reserve could be dashed, increasing the likelihood of a simultaneous decline in global stock markets and the cryptocurrency market. With macroeconomic uncertainty expected to weigh on markets for the time being, whether Bitcoin can hold the $65,000 support level is likely to serve as a critical turning point in determining the market’s short-term direction.
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