Key Highlights
- BTC retreated to $70,623 on Sunday following the U.S. announcement of a Strait of Hormuz blockade
- Diplomatic negotiations between Washington and Tehran fell apart after Iran declined to halt its nuclear weapons development
- Crude oil prices surged 9.5% to $105 per barrel in the first half-hour of U.S. futures trading
- Open Interest in Bitcoin futures declined to $51.39 billion from the previous day’s $54.82 billion
- BTC has gained 7.4% since hostilities commenced between the U.S. and Iran on Feb. 28
Bitcoin experienced a decline to $70,623 on Sunday following Washington’s declaration of a naval blockade targeting the Strait of Hormuz. The announcement followed the collapse of weekend diplomatic efforts between the United States and Iran.
President Donald Trump verified the blockade through a Truth Social statement. In his message, Trump indicated that Tehran’s refusal to abandon its nuclear weapons development represented the singular critical obstacle in negotiations.
J.D. Vance, the Vice President, disclosed on Saturday evening that diplomatic discussions held in Pakistan had not yielded an extended ceasefire agreement. Throughout most of Saturday, Bitcoin maintained trading levels above $73,000 before experiencing a significant pullback.
Following the blockade declaration, BTC decreased to approximately $70,900—representing a 2.5% decline across 24 hours. The cryptocurrency experienced additional downward pressure, reaching $70,623 when U.S. futures markets commenced trading on Sunday.
Crude oil experienced a dramatic 9.5% spike to $105 per barrel during the initial 30 minutes of market activity. Brent crude climbed to $98 on Monday as the geopolitical standoff persisted.
BTC Maintains Position Above $70,000 Threshold
By Monday’s trading session, Bitcoin had recovered above the $71,000 mark, sustaining its position above the 50-day Exponential Moving Average (EMA) situated at $70,753. This 50-day EMA is functioning as immediate-term price support.
Open Interest in Bitcoin futures contracts dropped to $51.39 billion on Monday, based on CoinGlass analytics. This represents a decrease from the prior day’s $54.82 billion, indicating diminished risk tolerance among leveraged market participants.
The Relative Strength Index (RSI) currently registers at 54, indicating moderate bullish momentum. The MACD indicator continues to display positive values, implying that downward pressure is subsiding.
BTC Returns Since Conflict Escalation
Bitcoin has appreciated approximately 7.4% since the U.S.-Iran military conflict initiated on Feb. 28, following a U.S. airstrike that resulted in the death of Iranian Supreme Leader Ayatollah Ali Khamenei. Bitcoin was valued at roughly $71,194 at the moment of publication.
This performance places Bitcoin ahead of both the S&P 500 index and gold during the identical timeframe.
The Strait of Hormuz facilitates approximately one-fifth of worldwide oil transportation. Disruptions in this critical waterway have caused instability across financial markets throughout the past six weeks.
A daily closing price exceeding $73,000 could establish a trajectory toward $75,623—representing the 23.6% Fibonacci retracement level of Bitcoin’s descent from $126,200 to $60,000. Critical support on the downside persists at the 50-day EMA around $70,753. A breach beneath this threshold could trigger movement toward $60,000.
Bitcoin established its all-time peak of $126,080 in October.
