Bitcoin Slides as Trump’s 48-Hour Iran Ultimatum Rattles Markets
The crypto market turned sharply lower over the weekend as Donald Trump escalated tensions with Iran, issuing a 48-hour ultimatum tied to the reopening of the strategically vital Strait of Hormuz.
Bitcoin dropped to $68,192 early Sunday, marking a 3.2% daily decline and a 4.1% loss over the past week. The sudden downturn followed Trump’s warning that failure to reopen the strait could result in strikes targeting Iran’s power infrastructure.
The shift in tone stunned markets. Just a day earlier, rhetoric had hinted at de-escalation, fueling optimism across risk assets. That confidence quickly unraveled as the situation intensified, exposing how heavily traders were positioned for continued upside.
Liquidation data underscores the imbalance. Roughly $299 million in positions were wiped out in the past 24 hours, with long trades accounting for the vast majority. Bitcoin alone saw $122 million in long liquidations, while Ethereum traders absorbed nearly $96 million in losses. One of the largest single liquidations—a $10 million BTC-USDT position—highlighted the speed of the reversal.
Altcoins mirrored the downturn. Ethereum slipped to $2,114, XRP fell to $1.41, BNB declined to $633, Solana dropped to $88.55, and Dogecoin slid to $0.092. Only Ethereum and Solana managed to hold slight gains over the past week, while the broader market remained in the red.
With the ultimatum deadline set for Monday evening, uncertainty continues to weigh heavily on sentiment. The potential targeting of energy infrastructure would mark a significant escalation, particularly as the Strait of Hormuz remains largely closed—disrupting around 20% of global oil and gas flows.
Last week’s rally, which pushed Bitcoin near $75,900, now appears to have been driven by optimism around easing tensions—momentum that has since evaporated. Despite supportive signals from the Federal Reserve’s recent rate stance, geopolitical risks are keeping traders cautious and limiting aggressive positioning.
As volatility returns, market participants are closely monitoring key support levels and bracing for further headline-driven swings in the days ahead.