Bitcoin tanks to nearly $68,000 amid US threat to Iran over Strait of Hormuz
New Delhi: As the West Asia conflict escalates, Bitcoin and the overall crypto market declined further on Sunday, after US President Donald Trump warned to attack Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours.
Bitcoin touched $68,241 per coin and if the hostilities remain elevated, Bitcoin can lose even more. Otherwise, it may attempt to reclaim lost ground and reestablish its prior range above $70,000.
Over $240 million in crypto positions vanished in just about an hour following Trump’s comments. Even though Bitcoin is still up about 7 per cent this month, analysts warn the crypto market is fragile amid rising geopolitical tensions.
Moreover, the sudden spike in tension spooked investors, causing over $1 billion in crypto liquidations within a day.
According to reports, market pricing now reflects around 50 per cent chance that the US Federal reserve may raise interest rates by October.
Notably, liquidation heat maps show significant liquidity clustered between $68,000 and $68,700.
Earlier, Trump threatened to “hit and obliterate” Iran’s power plants within 48 hours if it does not reopen the Strait of Hormuz, even as he said Washington was close to meeting its military objectives in the conflict.
In a series of posts, Trump issued a direct ultimatum over the strategic waterway, saying: “If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS… the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!”
The warning marks a sharp escalation centred on the Strait of Hormuz, a vital global energy route, even as Trump signalled that US military operations could soon wind down.
“We are getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East,” he said.