Bitcoin reversed its recent rally over the weekend, falling sharply as geopolitical tensions escalated and a wave of liquidations hit the crypto market.
The largest cryptocurrency dropped 2.2% in the past 24 hours to $69,192, bringing its weekly loss to 3.1%. The move followed a fresh escalation from U.S. President Donald Trump, who issued a 48-hour ultimatum to Iran demanding the reopening of the Strait of Hormuz or facing potential strikes on key power infrastructure.
Trump warned that the U.S. would “hit and obliterate” Iran’s power plants—beginning with the largest—if shipping access through the strategic route is not restored.
The rhetoric marks a stark shift from just a day earlier, when Trump had indicated a possible wind-down of military operations. The sudden pivot unsettled markets that had been gaining confidence on expectations of de-escalation.
Positioning data shows the market was heavily skewed toward bullish bets heading into the weekend. According to CoinGlass, total liquidations reached $299 million over the past 24 hours, impacting more than 84,000 traders. Of that, $254 million—or about 85%—came from long positions.
Bitcoin longs accounted for $122 million in losses, while ether longs saw $95.7 million liquidated. The single largest liquidation was a $10 million BTC-USDT position on OKX.
Major altcoins declined alongside bitcoin. Ether fell 1.8% to $2,114, XRP dropped 2.5% to $1.41, BNB lost 1.4% to $633, Solana slipped 2.1% to $88.55, and Dogecoin declined 2.7% to $0.092. On a weekly basis, only ether and solana remained slightly in positive territory, while most large-cap tokens posted losses.
With the 48-hour deadline set to expire Monday evening, uncertainty remains high. If Iran does not comply, markets could face further volatility as the risk of direct strikes on energy infrastructure rises—potentially marking a significant escalation in the conflict.
The Strait of Hormuz continues to see limited commercial activity, with roughly 20% of global oil and gas flows still disrupted.
Bitcoin’s rally to $75,912 last week now appears to have been driven by short-lived ceasefire expectations. Although the Federal Reserve maintained a dovish tone in its latest decision, persistent geopolitical risks are keeping traders cautious and limiting aggressive positioning.
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