Bitcoin slipped below $68,000 late Sunday as traders reacted to a fresh escalation between the US and Iran, with oil prices jumping and Asian equities opening lower.
Market reaction
US President Donald Trump said on Truth Social that the US would “hit and obliterate” Iranian power plants if Tehran did not reopen the Strait of Hormuz within 48 hours.
Iran responded by warning it would retaliate against US and Israeli assets in the Gulf if its power or water infrastructure were attacked.
Iran also threatened to fully close the Strait of Hormuz, a key global oil shipping route.
Bitcoin fell 1.8% over 24 hours to about $68,160 after dipping below $67,600.
Liquidations and sentiment
The drop triggered $336.3 million in crypto liquidations over the past day, according to CoinGlass.
Roughly $100 million of that came from failed bitcoin long positions.
Rachael Lucas, an analyst at BTC Markets, said crypto was behaving more like a risk asset than a haven:
“It is trading in lockstep with equities right now, not as a haven, and sentiment is sitting at historic lows, with the Fear and Greed Index deep in ‘extreme fear’ territory at 8.”
Oil and macro pressure
Crude briefly rose above $100 a barrel before pulling back, while Brent climbed past $114 and later traded below $113.
Asian markets also weakened, with Australia and New Zealand down 0.8% and Japan falling more than 4%.
Lucas said Brent’s surge was lifting inflation expectations and changing rate outlooks:
“That is a significant macro repricing that crypto will continue to reflect until there is clarity on both fronts.”
