Bitcoin dropped below $67,000 after US President Donald Trump warned of further military escalation in Iran, shaking investor confidence and reversing a two-day market rally.
The cryptocurrency fell from an intraday high of $69,135 to $66,818 as traders abandoned expectations of a near-term resolution to tensions around the Strait of Hormuz.
“We are going to hit them extremely hard over the next two to three weeks,”
Trump said, adding:
“We’re going to bring them back to the Stone Ages, where they belong.”
Oil prices surged during the 19-minute address, with Brent crude climbing 5% to above $106 per barrel and US crude rising 4.1% to $104, reflecting fears of prolonged supply disruption.
The escalation erased gains across risk assets, with Ethereum falling 2.8% to $2,084 and global equities declining, including a 1.1% drop in S&P 500 futures and a 3.5% fall in South Korea’s KOSPI index.
Markets had rallied in the previous two days on hopes of de-escalation, but Trump’s speech offered no timeline for ending the war or reopening the Strait of Hormuz, increasing uncertainty for investors.
Iran signalled no willingness to negotiate, with officials rejecting talks and advancing plans to formalise a Hormuz toll system that could impose long-term costs on global energy flows.
At the time of reporting, Bitcoin price was $66,440.21.