Bitcoin prices plunged sharply over the weekend, driven by rising geopolitical tensions in the Middle East. At the same time, investors are growing increasingly wary of inflation risks, which have recently sparked a significant sell-off across digital assets.

According to a report from CNBC on Monday, June 23, 2025, Bitcoin's value briefly dipped below US$99,000 on Sunday, marking its lowest level in more than a month.

The sell-off appears to have been triggered by intensifying global uncertainty. The conflict between Iran and Israel, originally confined to a regional dispute, has now expanded following U.S. military strikes on Iran, significantly raising the potential for broader escalation.

Adding to concerns, Iran has reportedly threatened to shut down the Strait of Hormuz, a vital shipping corridor that handles approximately 20% of the world’s oil supply.

Earlier, JPMorgan warned that a complete closure of the Strait of Hormuz could push oil prices up to US$130 per barrel. Such a surge could potentially drive U.S. inflation back up to 5%, leading the Federal Reserve to respond with further interest rate hikes.

Given this outlook, investors are reconsidering their positions, shifting away from speculative assets like cryptocurrencies, and moving towards safer bets such as the U.S. Dollar, in anticipation of a renewed tightening in interest rate policy.