Bitcoin fell below the $76,000 level after Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz, raising fears of escalating geopolitical tensions.
The US president said he would maintain the blockade of the strategic waterway until Iran agrees to a deal addressing its nuclear programme, rejecting a plan to reopen the strait before negotiations.
Bitcoin dropped to around $75,700 from an intraday high above $77,000 following the development, reflecting broader market sensitivity to geopolitical risk.
The standoff has also contributed to rising oil prices, which can pressure risk assets such as cryptocurrencies as investors shift toward safer or inflation-hedged positions.
Trump described the blockade as “somewhat more effective than the bombing,” while signalling continued pressure on Iran to reach a nuclear agreement.
Reports indicate the US military has prepared contingency plans for targeted strikes, adding to uncertainty and increasing downside risk for crypto markets.
With peace talks stalled and the blockade potentially lasting months, traders are closely watching geopolitical developments as a key driver of near-term crypto volatility.
At the time of reporting, Bitcoin price was $75,747.67.