President Donald Trump’s shifting rhetoric regarding the Iran conflict fueled geopolitical and economic uncertainty. As a result, Bitcoin retreated below the $70,000 threshold on Sunday.
According to data from BeInCrypto, BTC shed roughly 2.3% over the past 24 hours to $68,938 as of press time
Crypto Markets See $322 Million Liquidation Flush
The downward price action triggered approximately $322 million in liquidations across the broader digital asset market, primarily flushing out over-leveraged positions.
Coinglass data showed long traders hoping for a price uptick absorbed $266 million of those losses. On the other hand, short sellers with bearish positioning accounted for the remaining $56 million.
Meanwhile, the crypto sell-off coincided with a dramatic surge in global energy markets. Brent crude oil prices have climbed to $112.19 per barrel, representing a 36% jump over the past month.
The spike follows Iran’s closure of the Strait of Hormuz, a crucial route that handles roughly 20% of the world’s oil supply. Iran shut down this path in response to a coordinated military campaign that the US and Israel launched in February.
Following this, Trump has issued a series of conflicting statements over the past 36 hours, contributing to investor anxiety.
On Friday afternoon, the president explicitly rejected a ceasefire. Just hours later, he stated that the US was “considering winding down” the conflict.
By Sunday, Trump pivoted again, threatening to obliterate Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours.
This rapid escalation has renewed Wall Street’s fears of sticky global inflation. Higher energy costs typically pressure central banks to keep interest rates elevated for longer. This presents a macroeconomic environment that typically drains liquidity from risk-on assets such as cryptocurrencies.
Notably, Bitcoin’s reaction reflects a persistent tension regarding its market identity.
While proponents have long championed the cryptocurrency as “digital gold”—a non-sovereign safe haven designed to protect portfolios during geopolitical crises—its performance over the weekend tells a different story.
Instead of acting as a hedge against Middle East instability, Bitcoin traded largely in lockstep with traditional risk assets, retreating the moment war rhetoric escalated and inflation fears resurfaced.
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