New Delhi: Bitcoin and the broader cryptocurrency market declined on Sunday as geopolitical tensions intensified after Donald Trump warned of potential strikes on Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours. Rising oil prices and global uncertainty triggered a risk-off sentiment among investors.
Bitcoin touched $68,241 per coin, and if the hostilities remain elevated, Bitcoin can lose even more. Otherwise, it may attempt to reclaim lost ground and re-establish its prior range above $70,000.
Over $240 million in crypto positions vanished in just about an hour following Trump’s comments. Even though Bitcoin is still up about 7 per cent this month, analysts warn the crypto market is fragile amid rising geopolitical tensions.
Moreover, the sudden spike in tension spooked investors, causing over $1 billion in crypto liquidations within a day.
According to reports, market pricing now reflects around a 50 per cent chance that the US Federal Reserve may raise interest rates by October.
Notably, liquidation heat maps show significant liquidity clustered between $68,000 and $68,700.
Earlier, Trump threatened to “hit and obliterate” Iran’s power plants within 48 hours if it does not reopen the Strait of Hormuz, even as he said Washington was close to meeting its military objectives in the conflict.
In a series of posts, Trump issued a direct ultimatum over the strategic waterway, saying: “If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS… the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!”
The warning marks a sharp escalation centred on the Strait of Hormuz, a vital global energy route, even as Trump signalled that US military operations could soon wind down.
“We are getting very close to meeting our objectives as we consider winding down our great military efforts in the Middle East,” he said.
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Caption: A woman buys Bitcoin at Bitcoin Change in Tel Aviv, Israel, on Jan. 8, 2018. (Xinhua/Gil Cohen Magen/IANS)
—IANS
