Bitcoin and the broader cryptocurrency market lost more than $20 billion in value on Monday after President Donald Trump claimed the United States was "taking over" the Strait of Hormuz, sending oil prices higher and accelerating a risk-off selloff. Bitcoin fell over 3% to trade at $62,389, briefly touching an intraday low of $62,120, as geopolitical tensions rattled global markets.
Trump's Strait of Hormuz comments roil markets
Speaking on Monday, Trump said the U.S. was "taking over" the Strait of Hormuz and that other nations would have to pay Washington for protecting the vital shipping route. He also claimed that negotiations had collapsed after an 11-hour meeting, warning Iran after the breakdown of a ceasefire and noting that U.S. forces had destroyed key Iranian military equipment overnight.
Following those remarks, Brent crude climbed above $79 per barrel after gaining nearly 5%, as military exchanges between the U.S. and Iran continued. Iran announced it had closed the Strait of Hormuz, though U.S. Central Command rejected that claim. Rising oil prices and heightened geopolitical uncertainty weighed on risk assets, including cryptocurrencies.
Crypto liquidations accelerate as altcoins slide
Selling pressure spread quickly across digital assets. Ethereum, XRP, BNB, Solana, Hyperliquid, Zcash and Cardano fell between 2% and 6% as investors reduced exposure to risk assets. According to CoinGlass, the downturn erased nearly $20 billion from the crypto market and triggered about $40 million in liquidations across Bitcoin, Ethereum, Solana and other positions. Around 73,000 traders were liquidated over the past 24 hours, with the largest single liquidation occurring on Hyperliquid, where a position worth roughly $4.86 million was closed.
The selloff came just hours after reports that shares of American Bitcoin, a mining and treasury company backed by Eric Trump, had fallen more than 95% from their peak, erasing over $600 million from the value of Eric Trump's roughly 6% stake. The stock closed at a record low of $6.13 on July 10 after a 1-for-15 reverse stock split.
Traders eye U.S. inflation data and Fed testimony
Attention has now shifted to this week's U.S. economic events. Traders are watching Tuesday's consumer price index inflation report and testimony from Federal Reserve Chair Kevin Warsh for fresh signals on the central bank's interest-rate path. Those releases are expected to shape sentiment across financial markets as investors continue to assess the impact of escalating tensions in the Middle East.