Bitcoin extended losses Sunday morning after President Donald Trump said the US would move to impose a naval blockade of the Strait of Hormuz following failed diplomacy with Iran over its nuclear program.
In a statement on Truth Social, Trump said negotiations led by Vice President JD Vance ended without agreement on Tehran’s nuclear activities, which he called “the only point that really mattered,” and reiterated that Iran must not be allowed to develop nuclear weapons. He said Iran had been “unyielding” on its nuclear ambitions despite progress on other issues.
Trump announced the US Navy will “begin the process of BLOCKADING” ships entering and leaving the Strait of Hormuz to counter what he described as Iran’s “extortion,” alleging risks from naval mines and other disruptions. He said allied nations would participate and that vessels paying “illegal tolls” to Iran could be intercepted in international waters.
He warned US forces would take aggressive action against threats to shipping, move to neutralize alleged mines, and respond with overwhelming force to any attacks on American or civilian vessels. Trump also claimed Iran’s military capabilities, including its navy, air defenses, and radar systems, had been largely degraded.
On-chain data showed bitcoin fell below $71,000 after the remarks, shedding about $2,000. BTC was trading near $71,000 at press time as traders weighed whether the decline signals a deeper correction amid renewed geopolitical concerns. Altcoins also fell, with Ethereum dropping below $2,200 and total crypto market capitalization slipping nearly 2% to under $2.5 trillion.
Disclosure: Edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
