As geopolitical tensions rose again in global markets, the cryptocurrency market also faced sharp volatility. Bitcoin, affected by developments over the weekend, fell below the $69,000 level, largely giving back its recent gains.
US President Donald Trump issued a harsh ultimatum to Iran. Trump stated that if Iran does not reopen the Strait of Hormuz “fully and without threat” within 48 hours, the US will target the country’s energy infrastructure. In a post on Truth Social, Trump specifically mentioned that major power plants in Iran would be targeted. This statement triggered a rapid wave of risk aversion in the markets.
This statement was seen as a sharp turn from Trump’s rhetoric just a day earlier, when he had adopted a softer tone, implying a possible reduction in military operations. This rapid shift in rhetoric disrupted the expectations of investors, particularly those seeking direction in risky assets, and increased uncertainty in the markets.
The cryptocurrency market reacted quickly to these developments. Bitcoin fell below the $69,000 level as of Sunday morning, losing approximately 2.2% in the last 24 hours and 3.1% on a weekly basis. Thus, BTC gave back all the gains it had made the previous week in a single week.
Significant liquidations also occurred in the futures markets. In the last 24 hours, the total amount of liquidations reached approximately $216 million, with $170.5 million of this coming from long positions. Short position liquidations remained at $46.2 million.
*This is not investment advice.
