Bitcoin fell sharply overnight after President Donald Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz was not reopened within 48 hours.
The move sent bitcoin from roughly $70,400 to $68,200 before a partial rebound.
Trigger from Washington
The selloff followed a Truth Social post that abruptly shifted market expectations.
Less than a day earlier, Trump had discussed the possibility of winding the war down.
That softer tone had helped support a recovery narrative, even if markets were not treating it as a formal ceasefire.
The new ultimatum reversed that impression and widened the perceived path for escalation.
Range still intact
The drop mattered because bitcoin had been testing the upper end of a broad $62,800 to $72,600 range rather than breaking out decisively.
According to the report, the market had repaired much of the earlier panic damage but still had not secured acceptance above $70,000.
That makes the latest move look more like a failed test than a confirmed structural breakdown.
What traders are watching
According to analysts, the key near-term test is whether bitcoin can reclaim and hold $70,000.
