Ship traffic in the Strait of Hormuz has plummeted from 130 to just 28 ships per day from Friday to Sunday. This geopolitical standoff, which has been ongoing for nearly six months since late February, pushed Brent crude oil prices up 0.7% to $91.46 per barrel. Bitcoin responded to this series of macro pressures by crawling up above $64,600 on August 18, 2026, recording a daily high of $64,926 before running out of steam to break through the psychological barrier of $65,000.
This stagnation is rooted in a diplomatic deadlock. The 60-day negotiation window that began with the temporary agreement on June 17 has expired without an extension. Through the Truth Social platform, Trump rejected the idea of negotiations with Iran and reaffirmed his position: “Naval Blockade remains in full force, Hormuz Strait is open and operating”. This claim of opening the strait was immediately and strongly refuted by Iran’s chief negotiator, Mohammad Baqer Qalibaf. He confirmed that Iran continues to close the passage that normally controls one-fifth of global oil and LNG supply. The strait will only be opened if the United States meets four absolute demands: lifting the port blockade, removing oil sanctions, releasing frozen assets, and halting military threats.
Bond Yields at Highest Level Since 2007
The energy traffic crisis in the Middle East also pushed WTI crude prices up by 0.9% to $85.25. Fears of a return to high inflation spread rapidly to the bond market, pushing the 10-year US Treasury yield to skyrocket to 4.72%. The 30-year bond yield even hit 5.33% - a peak level that has not been reached since 2007.
The heavy burden of these bond yields immediately hit the Wall Street stock market. The Nasdaq index led the drop with a 1.4% decline, followed by the S&P 500, which weakened by 0.6%, and the Dow Jones, which edged down 0.1%. Amid this risk-off sentiment, major institutional players in the crypto market chose to sit on the sidelines. MicroStrategy did not conduct any buying or selling of Bitcoin throughout the period of August 10 to 16, keeping their total holdings flat at 840,447 BTC.
What is Crypto’s Next Move?
As global investment markets are held hostage by the blockage of the Strait of Hormuz, crypto industry players are shifting their efforts to domestic policy. A major White House meeting with crypto executives, including representatives from Coinbase, Ripple, and a16z, has been scheduled for August 19.
Market focus is now split between macro risks and regulatory lobbying. Bitcoin’s failure to surge well above $65,000 sends a clear signal that even decentralized assets still bear the burden of rising energy costs and government debt yields.
Source: crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
