Bitcoin plunged on Sunday morning, briefly falling below $69,200 as U.S. President Donald Trump issued a 48-hour ultimatum to Iran regarding the Strait of Hormuz, threatening strikes on the country’s power plants. The cryptocurrency traded at $69,192 as of 11:00 AM EST, a 2.2% decline over the past 24 hours and a 3.1% decrease for the week, according to market data.
Trump’s demand, delivered late Saturday, requires Iran to reopen the vital shipping lane or face military action targeting its power infrastructure. He stated his intention to “hit and obliterate” Iran’s power plants, beginning with the largest facility, should the Strait remain closed to commercial vessels. The escalation follows a shift from Friday, when Trump indicated he was considering “winding down” military operations in the region.
The abrupt change in tone triggered significant market volatility and widespread liquidations across the cryptocurrency market. Data from CoinGlass reveals a total of $299 million in liquidations over the last 24 hours, impacting 84,239 traders. Long positions bore the brunt of the sell-off, accounting for $254 million, or approximately 85% of the total liquidations. Bitcoin longs alone suffered $122 million in losses, while Ether longs lost $95.7 million. The largest single liquidation event was a $10 million BTC-USDT swap on the OKX exchange.
The lopsided liquidation ratio underscores the prevailing bullish sentiment prior to the weekend, leaving the market particularly vulnerable to geopolitical shocks. Bitcoin had experienced eight consecutive days of gains before Trump’s announcement. Major tokens mirrored Bitcoin’s decline, with Ether dropping 1.8% to $2,114, XRP losing 2.5% to $1.41, BNB sliding 1.4% to $633, Solana falling 2.1% to $88.55, and Dogecoin losing 2.7% to $0.092. Ether and Solana were the only major cryptocurrencies to post weekly gains, increasing by 0.8% and 0.7% respectively.
The 48-hour deadline expires Monday evening. Should Iran fail to comply, the market anticipates the potential for direct strikes on Iranian power infrastructure, marking the first instance of civilian energy systems being directly targeted in the ongoing conflict. Approximately 20% of the world’s oil and gas supply remains disrupted as the Strait of Hormuz remains largely closed to commercial traffic.
Last week’s rally, which saw Bitcoin reach a high of $75,912, now appears to have been predicated on speculation regarding a potential ceasefire, a prospect that diminished sharply over the weekend. While the Federal Reserve’s decision on Wednesday to hold interest rates steady, accompanied by a dovish signal, had initially supported risk assets, the escalating geopolitical tensions continue to deter traders from making substantial directional bets, according to reports from Bloomberg.
