Key facts
- Bitcoin fell below $64,000 amid escalating US-Iran tensions.
- Crypto liquidations reached $238 million, primarily affecting long positions.
- The US and Israel are considering a land blockade on Iran to intensify economic pressure.
- Iran struck two oil tankers in the Strait of Hormuz.
- Oil prices surged above $85 per barrel, and 10-year Treasury yields rebounded.
Bitcoin fell below $64,000 on Friday, experiencing a more than 1% decline in a short period as oil prices spiked and the US and Israel reportedly discussed imposing a land blockade on Iran to intensify economic pressure. This development follows recent escalations in tensions between the US and Iran.
The US and Israel are exploring the possibility of a land blockade, which would involve diplomatic efforts with neighboring countries to restrict Iran's border crossings, imports, and exports. This idea emerged after discussions between President Donald Trump and Prime Minister Benjamin Netanyahu regarding various options. Concurrently, Iran reported striking two oil tankers in the Strait of Hormuz, claiming they did not heed warnings and declaring the strait closed without coordination with Iranian naval forces.
These geopolitical events have contributed to a broader risk-off sentiment in financial markets. Bitcoin's price dropped 2% over the past 24 hours to trade around $63,677. Trading volume has decreased, and open interest in Bitcoin futures has also declined, indicating caution among traders. The US Dollar Index (DXY) rose to 100.34, and the 10-year Treasury yield rebounded to an 18-month high of 4.684%, further pressuring Bitcoin.
Earlier, President Trump announced that Hamas had agreed to disarm and that Gaza would be under a new Palestinian government. The previous day, crypto liquidations had reached $238 million, with long positions bearing the brunt, following President Trump's warnings of intensified strikes on Iran.