- Bitcoin fell one percent to $70,940 USD as Hormuz tensions escalated on April 13, 2026.
- Fear & Greed Index plunged to 12, marking extreme fear among crypto traders.
- Ethereum dropped one percent to $2,192.61 USD, mirroring risk-off sentiment in Gulf markets.
Strait of Hormuz crypto selloff sparked by President Donald Trump's deployment of U.S. naval assets to the Strait on April 13, 2026, dropped Bitcoin 1% to $70,940 USD.
Traders in Dubai's DMCC Crypto Centre dumped positions. Ethereum shed one percent to $2,192.61 USD. XRP declined 0.4 percent to $1.32 USD. The Crypto Fear & Greed Index hit 12, per CoinMarketCap data.
Hormuz Deployment Disrupts Gulf Oil Flows
The Strait of Hormuz channels 20 percent of global oil supplies, per Reuters. Trump's order pressures Iran over nuclear activities. Gulf states ship 17 million barrels daily through this chokepoint.
Saudi Aramco halted east coast exports, per company statements. QatarEnergy paused LNG cargoes. Brent crude spiked three percent to $85 USD per barrel, per Bloomberg data. Sovereign wealth funds in Riyadh and Abu Dhabi manage $500 billion USD in energy assets, per fund reports.
Risk-off flows accelerated. Investors fled high-beta assets like crypto. Bahrain's Rain exchange saw 40 percent volume surge in USD terms.
Crypto Mirrors 2022 Risk-Off Patterns
Bitcoin's correlation to Nasdaq-100 hit 0.75 this week. Ethereum fell one percent. Dogecoin plunged 2.5 percent.
"Geopolitical shocks amplify crypto volatility," said Mike McGlone, senior macro strategist at Bloomberg Intelligence. Bitcoin drew down 15 percent in 2019 Hormuz episodes, he noted.
Dubai's VARA-regulated platforms host $2 billion USD daily volume, per VARA filings. Adnoc paused blockchain pilots for oil tracking.
Glassnode data shows 50,000 BTC moved to exchanges in 24 hours. Long liquidations topped $200 million USD on Binance.
Gulf Funds Face Crypto and Energy Exposure
Saudi Arabia's Public Investment Fund (PIF) allocated one percent of its $925 billion USD AUM to crypto in 2025, per PIF disclosures. Abu Dhabi's Mubadala holds Ethereum via ventures. These stakes face near $1 billion USD mark-to-market losses.
Bahrain's sukuk now bundle USDT stablecoins at $1.00 USD. Sharia-compliant DeFi yields dropped two percent.
"Hormuz risks push capital to gold over BTC," warned Jurrien Timmer, director of global macro at Fidelity Investments. Gold rose 1.2 percent to $2,450 USD per ounce.
Dubai's 3.5 million expats trimmed crypto holdings. Fintech Sarwa reported 25 percent redemption requests.
Analysts Warn of Gulf Digital Finance Risks
Helima Croft, managing director at RBC Capital Markets, highlighted oil-crypto strains. "Gulf diversification into blockchain stalls when energy falters," she said.
Saudi NEOM integrates Ethereum payments. PIF reallocates $10 billion USD from tech to defense. Riyadh's CMA sandbox saw 15 percent fewer token listings.
Active Bitcoin addresses fell 12 percent to 850,000. Ethereum gas fees dropped 30 percent to 5 gwei.
Dubai Tests Key Crypto Support Levels
DMCC traders eye Bitcoin's $68,000 USD support. A break targets $60,000 USD. Ethereum holds $2,100 USD.
Qatar Financial Centre promotes crypto visas. QIA-backed stablecoin issuance pauses at $500 million USD.
ConsenSys paused Gulf pilots. UAE MetaMask downloads dipped 18 percent week-over-week.
Tensions Test Gulf Blockchain Goals
Vision 2030 invests $100 billion USD in digital economy. Crypto claims five percent via ADGM and DFM hubs.
Singapore's MAS grew stablecoin reserves 20 percent. Estonia's blockchain thrives without oil risks.
Gulf funds eye South Korea's Upbit. Its volume rose five percent.
Crisis Exposes Diversification Gaps
Crypto diversification ambitions meet reality in Hormuz blockade.
Dubai crypto ownership slipped to 12 percent of expats. Bahrain exchange users logged off.
Strait of Hormuz Crypto Selloff: Recovery Hinges on Standoff
Trump offers 72-hour negotiations. Iran masses boats near Musandam.
Oil rerouting via Bab el-Mandeb adds $2 USD per barrel. Emirates hedges $5 billion USD in fuel.
Bitcoin recovery above $72,000 USD ends the Strait of Hormuz crypto selloff. Next tanker incident decides stability.
