Crypto Rallies as Strait of Hormuz Reopens

Cryptocurrency markets rallied sharply into the weekend as the Strait of Hormuz reopened, easing a key geopolitical pressure point that had weighed on risk assets. The strait, through which roughly 20% of global oil supply transits, had been a focal point of tension, and its reopening reduced the near-term risk premium embedded across commodity and financial markets. Crypto, which had traded in correlation with broader risk sentiment during the period of elevated tension, moved higher as that overhang lifted. The rally suggests traders interpreted the reopening as a signal to rotate back into higher-beta assets. What to watch: whether the crypto move holds into next week will depend on whether the Hormuz situation remains stable and whether broader risk appetite sustains the bid across equities and commodities as well.