Bitaigen Research Bitcoin Slides to $75,000 Amid Hormuz Shutdown and Shifting Institutional Flows
On April 19, 2026, Bitcoin’s spot price settled around $75,000, a decline of roughly 4 % from its peak two weeks earlier. The dip coincided with the abrupt closure of the Strait of Hormuz on April 16 after Iran reported missile activity in the waterway, temporarily halting the transit of an estimated 20 million barrels of crude daily. Traders cited the oil‑supply shock as a catalyst for risk‑off positioning across commodities and digital assets alike.
Institutional investors appear to be recalibrating exposure in response to both geopolitical tension and domestic monetary policy. Data from Bloomberg Intelligence show that the three largest U.S. Bitcoin exchange‑traded funds—BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC)—experienced a combined net outflow of $212 million between April 10 and April 17. BlackRock’s filing with the SEC disclosed a reduction of 1.8 % in its IBIT holdings, while Fidelity noted a 2.3 % drop in FBTC assets under management over the same period.
The Federal Reserve’s policy stance continues to influence capital allocation. The Fed’s target range of 5.25 %–5.50 %, held steady since July 2023, was reaffirmed in the minutes released on April 15, with policymakers indicating a “wait‑and‑see” approach amid persistent inflation pressures. Market participants have linked the unchanged rates to a modest slowdown in risk‑appetite, prompting some hedge funds to divert a portion of their crypto allocations toward short‑duration Treasury positions.
On the technology front, the Bitcoin network is approaching the third anniversary of the Taproot upgrade, which introduced more efficient scripting capabilities and enhanced privacy. Developers are also testing a set of Ordinals protocol refinements aimed at reducing transaction size by up to 15 %, a change that could lower fees for NFT‑related activity. Meanwhile, the Lightning Network’s total capacity rose to 10.3 terabytes as of April 18, reflecting continued interest in layer‑2 scaling solutions among payment processors and institutional custodians.
Overall, the convergence of a geopolitically driven oil supply constraint, modest ETF outflows, a steady Fed policy rate, and incremental network upgrades framed a complex backdrop for Bitcoin’s price action on Thursday.
Global equity indices slipped modestly as investors weighed the mixed signals.
⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.
