The price of Bitcoin has plummeted, falling below $100,000 and reaching its lowest value since May 8. A number of other popular cryptocurrencies, including Solana, Ethereum, and Ripple have all experienced similar drops at the same time. 

It is believed that these drops in value have emerged because of concerns over the conflicts building in the Middle East, with Iran threatening to take control of the Strait of Hormuz. If this should happen Iran would be seizing one of the most important passages for oil trade, which itself handles 20% of the world’s oil supply.

The fact that Bitcoin’s price fell due to the fear of this event occurring highlights how much the value of crypto relies on external factors. Digital assets are highly speculative and volatile, meaning they have a tendency to rise and fall in value over time, depending on a number of factors including current events, media coverage, and social media hype.

Although, like in this example, the volatility of a coin can make it plumet in value, it is also one of the most appealing things about crypto for many investors. The price of Bitcoin has dropped in recent days, but this is put into perspective when we address the fact that when Bitcoin first emerged in 2009, its value didn’t even reach a dollar.

The volatility of crypto makes it a perfect companion within the online casino space. Crypto casinos, such as Coinpoker, not only give their users access to a wealth of casino games but also allow them to make an additional wager on the volatility of crypto itself. On top of this crypto users can enjoy the additional security benefits, faster withdrawal speeds, and the greater anonymity that comes with crypto.

The Strait of Hormuz, located between Oman and Iran, is a key location in the global oil trade business. There have been repeated reports of Iranian politicians considering closing the strait while they engage in conflict with Israel and conflicts grow between Iran and the US, and this has sparked a sense of nervousness in the crypto community which has resulted in Bitcoin, and a handful of other coins mentioned, dropping in price.

After these reports, as well as reports of US airstrikes on Iranian soil, over 50 oil tankers scrambled to leave the strait and markets were closed. As such, many are expecting the sudden drop in oil supply which is causing prices to surge exponentially with ripple effects felt across the globe.

All of this highlights the interconnected nature of cryptocurrency, and how their value is often aligned with other factors. Just as the value of Bitcoin has dropped, it will likely begin to rise again shortly as world events and their progress become clearer to the general public.