From October 3 to 5, three oil tankers were attacked in the Strait of Hormuz, with one being turned back by the Iranian Revolutionary Guard. A QCP Macro report shows that the normal daily passage of 26 ships has now dropped to just 3. The U.S. Strategic Petroleum Reserve has decreased by 28% since May. The freight cost for crude oil from West Africa to China has risen to $27.22 per barrel, with the year-to-date average at $7.37, an increase of 319%.
Hormuz is the choke point for about one-fifth of the world's oil. The end of this chain is not a safe-haven buying spree, but rather: rising oil prices → increased inflation expectations → the Federal Reserve forced to maintain a hawkish stance → a stronger dollar → pressure on risk assets.
This chain was fully experienced at the start of the Russia-Ukraine conflict in 2022. Now it’s happening again.
So, what do you see?
On October 7, U.S. spot Bitcoin ETFs saw a net outflow of $484.9 million, the largest single-day outflow since June 25. On October 8, another $244 million flowed out. Bitcoin dropped to $80,427, the lowest since early September.
The war did not bring safe-haven buying. The war brought energy inflation and rate hike expectations—a double blow to BTC.
QCP Macro bluntly states: rising geopolitical premiums are increasing the vulnerability of crypto market positions. The core question is—"Will the geopolitical premium drive further unwinding of risk positions, or are current positions already fragile enough to amplify the shock?"
But there is a turning point.
On October 9, Trump publicly stated that there would be no military action against Iran before the midterm elections. BTC immediately rebounded from $81,336 to $82,500.
On the same day, Russia announced a partial lifting of the diesel export ban, allowing 500,000 tons of diesel into the international market. The G7 had previously agreed to release 100 million barrels of strategic diesel reserves.
Good news on the energy supply side is accumulating. Once the market confirms that the diesel price spread has peaked and is falling, the "war → rate hike" chain will loosen. BTC may experience a "bad news fully priced in" style recovery rally.
Remember this sentence:
In the face of geopolitical risks, BTC is not a substitute for gold; it is a thermometer of liquidity.
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