Bitcoin and the other cryptocurrencies fell to below $71.000 on Sunday morning after reaching its highest value at $73.000 in the last few months. This bearish occurred after the announcement regarding the result of the ceasefire and peace negotiation which was held in Pakistan.
According to the data from The Block, Ethereum fell 3.6% to $2.202, XRP dipped 2% to $1.33, and Solana dropped 3.25% to $82. This aligns with the index on GMCI, which tracked the performance of top 30 cryptocurrencies that have fallen 2,5% in the last 24 hours.
This slump got worse by the impulsive post from President Donald Trump on his Truth social. Through his account, President Trump stated that the US Navy was in the process to blockade the Hormuz Strait to intercept the ships that will pass through the strait and pay for the toll access to Iran, there also military threat which was written in the post. This impulsive statement has predicted to soar the global oil price, and triggered a new conflict with China as the main buyer of the oil in that region.
However , this post has disappeared from President Trump’s account. There has been no official confirmation from Truth Social or from The White House about the disappearance of that post. The escalation of geopolitical tension caused by President Trump’s statements towards foreign policy have happened several times which then triggered speculation or clarification from the Pentagon–The Defense Department of the United States.
This sequence of events had triggered the market reaction rapidly. As soon as the narrative of the Hormuz Straits blockade and war appeared again, investors inclined to swift and avoid the risk assets. This moment influenced BTC to start falling by up to 2,5%. This was caused by the market anticipation of a spike in inflation due to rising oil prices.
