The value of liquidated leveraged positions surged to $240 million within a single hour as the market reacted sharply.
After a relatively calm Saturday that saw Bitcoin hold above $70,000, the market turned volatile overnight, with the price dropping toward $68,000 for the first time since March 9.
The decline followed strong remarks from Donald Trump, who warned Iran of serious consequences if it does not reopen the Strait of Hormuz.
Escalation in Geopolitical Tensions
Recent developments suggest shifting signals from Washington. Earlier reports from Axios indicated that Trump was seeking a point of contact within Iran’s leadership to begin negotiations aimed at easing tensions.
However, the tone later changed when Trump publicly issued a direct warning, stating that if Iran failed to fully reopen the Strait of Hormuz within 48 hours, the United States would target and destroy key power infrastructure, beginning with its largest facilities.
Analysts at The Kobeissi Letter highlighted how dramatically the president’s stance appeared to shift within a short period of time.
Bitcoin Reacts With Sharp Decline
Bitcoin responded quickly to the escalating situation in the Middle East. The asset had been trading above $70,000 and briefly approached $71,000 before dropping significantly.
On some exchanges, the price fell below $68,000, while platforms such as Bitstamp and Binance recorded lows near $68,200, marking a three week low.
The broader cryptocurrency market followed the downward trend. Ethereum dropped below $2,100, while XRP slipped under $1.40 before seeing a slight recovery.
During the selloff, liquidations across leveraged positions exceeded $240 million within an hour, reflecting the intensity of the sudden market move.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
