New Delhi, March 22 — Bitcoin and the broader cryptocurrency market extended their decline on Sunday amid escalating tensions in the Middle East, triggered by fresh warnings from U.S. President Donald Trump.
Bitcoin dropped to around $68,241 per coin, with analysts cautioning that prices could fall further if geopolitical risks persist. However, a stabilization in the situation could help the cryptocurrency regain momentum and move back above the $70,000 mark.
Market volatility intensified sharply after Trump warned that the United States could target Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours. Within an hour of the statement, more than $240 million worth of crypto positions were wiped out.
Despite being up roughly 7% this month, the crypto market is showing signs of fragility due to rising global uncertainty. Investor sentiment weakened further as over $1 billion in liquidations occurred within a single day.
Reports indicate that market expectations now reflect a 50% probability of a rate hike by the US Federal Reserve by October, adding another layer of pressure on risk assets like cryptocurrencies.
Liquidation heat maps suggest that significant trading activity is concentrated between $68,000 and $68,700, making this range critical for near-term price movement.
Earlier, Trump escalated tensions by threatening to “hit and obliterate” Iran’s power infrastructure if it fails to fully reopen the Strait of Hormuz within the stated timeframe. In a series of posts, he issued a direct ultimatum, underscoring the strategic importance of the waterway for global energy supplies.
At the same time, Trump indicated that U.S. military operations in the region could soon be scaled down, stating that Washington is close to achieving its objectives in the ongoing conflict.
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