The price of Bitcoin fell below $71,000 following a U.S. announcement of a naval blockade of the Strait of Hormuz. The decision came after peace talks with Iran collapsed, with U.S. President Donald Trump stating Iran refused to end its nuclear weapons program. The blockage of the critical oil shipping route caused a sharp 9.5% spike in oil prices, contributing to market volatility.
Bitcoin’s price dropped to $70,623 after the United States confirmed a blockade of the Strait of Hormuz. This followed failed peace negotiations with Iran, as mentioned in a social media post by U.S. President Donald Trump.
Trump confirmed the blockade and attributed the collapse of talks to Iran’s stance on its nuclear program. He called it the only issue that “really mattered,” while labeling Iran’s maritime actions as “world extortion.”
The strategic waterway handles one-fifth of global oil trade, and the dispute has caused significant financial market disruption. Oil markets have experienced their highest volatility since early 2022, with prices jumping to $105 per barrel.
Despite the recent drop, Bitcoin has risen about 7.4% since the U.S.-Iran conflict began on February 28. The conflict started with a U.S. airstrike that killed Iran’s Supreme Leader.
The cryptocurrency has still managed to outperform traditional assets like the S&P 500 and gold during this period. This recovery comes after Bitcoin reached a high of $126,080 in October.
