- Bitcoin falls 1.1% to USD 70,802 after Trump's Hormuz blockade threat.
- Crypto Fear & Greed Index drops to 12, lowest since Q4 2025.
- Brent crude surges 5.2% to USD 92.50, risking global inflation spike.
President Trump's Hormuz blockade threat on April 13, 2026, plunged Bitcoin 1.1% to USD 70,802. The Crypto Fear & Greed Index hit 12 (Alternative.me). Ethereum fell 1.0% to USD 2,191.69 on risk-off flows.
Hormuz Blockade Threat Disrupts 20% Global Oil Flows
Trump directed the U.S. Fifth Fleet to prepare Hormuz blockade operations after Iranian provocations. The strait handles 20% of global oil trade, or 21 million barrels per day, per U.S. Energy Information Administration 2025 data.
Brent crude futures surged 5.2% to USD 92.50 per barrel (Reuters, April 13). Tanker insurance rates rose 15%. Energy spikes now pressure corporate margins and fuel inflation.
Goldman Sachs estimates a sustained blockade adds 0.8 points to global CPI in three months. Federal Reserve Chair Jerome Powell cited persistent input pressures. ECB President Christine Lagarde noted eurozone's 40% reliance on Middle East energy.
Extreme Fear Grips Crypto Markets at Index 12
Alternative.me's Crypto Fear & Greed Index dropped to 12, lowest since Q4 2025. Binance and Coinbase volumes rose 28%. Glassnode data shows Bitcoin open interest fell 4.2% to USD 28.4 billion.
Spot Bitcoin ETFs saw USD 215 million outflows (ETF.com). Goldman Sachs Prime Services reports hedge funds cut digital assets 3.1%. Ethereum staking yields climbed to 4.2%.
Oil Shock Fuels Dollar Rally, Crushes Crypto
Geopolitical risks lifted the DXY 0.8% to 108.45. U.S. 10-year yields rose 12 basis points to 4.35%. Bloomberg Intelligence's Mike McGlone said, "Hormuz tensions boost safe-haven dollar flows and hammer risk assets like crypto."
Blockworks CEO Zack Shapiro forecasts 10-15% Bitcoin drops if blockade occurs (CoinDesk). Ethereum DeFi TVL dipped 2.3% to USD 98 billion (DefiLlama). Crypto funding rates turned negative at -0.02% (Lyn Alden).
Oil surge raises inflation views. Central banks turn hawkish. Stronger USD erodes crypto power. Bitcoin-Brent 30-day correlation hit 0.65 (Bloomberg).
Supply Chains and EM Economies Strain
TSMC reported 7% logistics cost hikes from Mideast shifts. U.S. automakers delayed EV output on 4-6% lithium and nickel surges.
Turkish lira slid 1.2% to 35.80 per USD. Indian rupee fell 0.9% to 85.45. Brazil real dropped 1.5%.
China's 10 million bpd Hormuz oil imports risk 2% GDP drag if prolonged (Citigroup).
Fed Rate Cut Odds Plunge on Inflation Fears
Powell signaled vigilance. CME FedWatch shows June cut odds at 42%, down from 68%. September holds 75%.
S&P 500 futures fell 1.4%. Nasdaq futures dropped 1.8%. Gold rose 1.2% to USD 2,650.
Bitcoin miners shifted 2% hashrate to U.S. (Cambridge Centre for Alternative Finance).
Key Levels Amid Hormuz Blockade Threat Escalation
Traders eye Brent at USD 100. Bitcoin tests USD 70,000 support, then USD 65,000. Ethereum pivots at USD 2,100.
Trump speaks April 14. Markets prepare for volatility from the Hormuz blockade threat.
