Strait of Hormuz Heats Up, Bitcoin Price Immediately Plummets to This Level
Bitcoin’s price weakened during Friday’s trading on 8 May 2026, following heightened military tensions between the United States and Iran in the Strait of Hormuz region. The conflict prompted investors to reduce holdings in risky assets, including cryptocurrencies.
According to Investing, Bitcoin fell 1.7% to US$79,679.8, equivalent to Rp1.35 billion, at 01:52 ET. Nevertheless, on a weekly basis, Bitcoin was still up around 1.3% and poised to record gains for the sixth consecutive week.
The drop in Bitcoin’s price came after the US military announced retaliatory strikes against Iran in response to attacks on three American warships passing through the Strait of Hormuz.
Previously, Iran accused the US of breaching the ceasefire after attacking an Iranian vessel and civilian areas this week. The latest conflict was triggered by US military operations aimed at restoring commercial trade routes in the Strait of Hormuz.
US President Donald Trump reportedly halted those operations a few days after they began. Iran rejected the operations and is said to want to strengthen its control over the Strait of Hormuz.
In addition to geopolitical sentiment, Bitcoin was pressured after Strategy Inc announced the possibility of selling part of its Bitcoin holdings to pay dividends. However, the company has not specified the timing or amount of the sales.
Amid these pressures, institutional demand and developments in US crypto regulations have continued to support Bitcoin’s price in recent weeks.
In this quarter, institutional buying and dip-buying have helped maintain Bitcoin’s upward trend. On the other hand, the world’s largest cryptocurrency exchange, Binance, is also under scrutiny from the US Department of the Treasury.
According to a report from The Information, the US government sent a letter to Binance regarding alleged violations of sanctions against Iran. Binance has been asked to implement a monitoring programme previously agreed upon in 2023, after the company pleaded guilty to sanctions and anti-money laundering violations.
The letter relates to reports that over US$1 billion, or Rp17 trillion, in crypto transactions flowed through Binance to Iran-related entities from 2024 to 2025.
As a result of the news, Binance’s BNB token fell 1.7%. Most altcoins also weakened, following Bitcoin. Ether dropped 2.6% to US$2,275.58, or about Rp38.68 million.