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Trump Ultimatum on Strait of Hormuz Knocks Bitcoin Below $70,000

Market pricing now reportedly assigns roughly even odds to a Fed rate increase by October.

Overview

  • President Trump warned he would “hit and obliterate” Iranian power plants within 48 hours if Iran does not fully reopen the Strait of Hormuz.
  • Bitcoin turned lower and briefly slipped under $70,000, with weekend trading showing broad crypto losses.
  • Telangana Today reported about $240 million of crypto positions were liquidated within roughly one hour after the remarks and more than $1 billion within a day.
  • Analysts cited the energy chokepoint and inflation risks, with Tagus Capital flagging deteriorating sentiment and Wintermute noting Bitcoin “sits in the crossfire.”
  • Reports indicate markets now price around a 50% chance of a U.S. rate hike by October as energy-driven uncertainty reshapes expectations.