Oil Shock Could Trigger Bitcoin’s Next Liquidity Selloff

Rising Strait of Hormuz tensions threaten oil supplies, potentially lifting prices and inflation expectations while nudging Treasury yields higher. That, in turn, could tighten global liquidity and trigger a Bitcoin liquidity selloff, as crypto markets—especially crypto leverage—are sensitive to funding costs and macro risk, even if geopolitical events aren’t catastrophic. The piece frames oil shocks as a potential trigger for a broader market‑wide liquidity event that could depress Bitcoin and other high‑beta assets.