Key Highlights
- BTC touched a Sunday low of $70,623 following the US blockade announcement of the Strait of Hormuz
- Diplomatic negotiations between Washington and Tehran broke down after Iran declined to halt its nuclear program
- Crude oil prices spiked 9.5% to reach $105 per barrel in the first half-hour of US futures trading
- Open Interest in Bitcoin futures contracted to $51.39 billion from the previous day’s $54.82 billion
- BTC has gained 7.4% since hostilities commenced between the US and Iran on Feb. 28
Bitcoin experienced a sharp decline to $70,623 this past Sunday following Washington’s declaration of a naval blockade targeting the Strait of Hormuz. The announcement followed the collapse of diplomatic efforts between the United States and Iran over the weekend.
President Donald Trump validated the blockade through a Truth Social statement, noting that Tehran’s refusal to abandon its nuclear weapons development was the sole “really mattered” obstacle in negotiations.
Vice President J.D. Vance disclosed Saturday evening that diplomatic discussions held in Pakistan had failed to achieve an extended cessation of hostilities. BTC had maintained levels above $73,000 throughout most of Saturday before experiencing a significant retreat.
Following the blockade disclosure, BTC descended to approximately $70,900 — representing a 2.5% decline across a 24-hour period. The cryptocurrency slipped further to $70,623 as US futures trading commenced Sunday.
Crude oil experienced a dramatic 9.5% surge to $105 per barrel during the initial 30 minutes of market activity. Brent crude reached $98 on Monday as the crisis persisted.
BTC Maintains Position Above $70K Mark
By Monday’s trading session, Bitcoin had recovered to levels exceeding $71,000, maintaining its position above the 50-day Exponential Moving Average (EMA) situated at $70,753. This 50-day EMA is currently functioning as immediate support.
Bitcoin futures Open Interest declined to $51.39 billion on Monday, per 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 stands at 54, indicating moderate bullish momentum. The MACD indicator remains positive, suggesting diminishing downward pressure.
Bitcoin’s Gains Since Conflict Escalation
Bitcoin has appreciated approximately 7.4% since the US-Iran confrontation intensified on Feb. 28, when a US military strike eliminated Iranian Supreme Leader Ayatollah Ali Khamenei. Bitcoin was valued at approximately $71,194 at press time.
This performance places Bitcoin ahead of traditional assets including the S&P 500 and gold during the identical timeframe.
The Strait of Hormuz facilitates approximately one-fifth of worldwide oil commerce. Supply chain disruptions in this strategic waterway have created volatility across financial markets throughout the past six weeks.
A confirmed daily close above $73,000 could establish a trajectory toward $75,623 — representing the 23.6% Fibonacci retracement level from Bitcoin’s peak of $126,200 to its $60,000 bottom. Critical support on the downside remains anchored at the 50-day EMA around $70,753. A breakdown beneath this threshold could trigger movement toward $60,000.
Bitcoin’s record high of $126,080 was established in October.
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