Bitcoin and major cryptocurrencies braced for volatility after Donald Trump threatened strikes on Iranian infrastructure, raising fears of a broader geopolitical escalation as markets reopened.
The warning came as Bitcoin traded near $66,600 heading into the weekend, already weakened by macro pressure and declining from earlier weekly levels alongside other major tokens.
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran… Open the Fuckin' Strait, you crazy bastards, or you'll be living in Hell,”
Said US President Donald Trump in a Truth Social post.
The threat follows stalled negotiations over reopening the Strait of Hormuz, with reports indicating potential targeting of energy and transport infrastructure if the deadline lapses without agreement.
Market data shows the earlier escalation wiped out $251.9 million in crypto long positions within 24 hours, while oil surged above $106 per barrel, intensifying inflation concerns and risk-off sentiment.
Analysts warn that a sustained oil shock above $120 could further erode expectations for rate cuts and accelerate capital outflows from speculative assets, with some projecting a potential Bitcoin decline towards $40,000.
Large Bitcoin holders have already shifted to net distribution and institutional flows remain paused over the weekend, leaving thin liquidity conditions that could amplify price swings before traditional markets fully reopen.
At the time of reporting, Bitcoin price was $69,218.67.