- Bitcoin rebounded above $71,000 Monday morning after a weekend crash triggered by a geopolitical threat.
- President Trump’s Saturday night warning caused over $1 billion in crypto liquidations and a massive market cap drop.
- The sell-off pushed the market into “Extreme Fear” and highlighted crypto’s vulnerability as a 24/7 market.
- Analysts link a recent drop in Bitcoin’s hashrate to operational disruptions in Iran.
- A 48-hour deadline for a deal on the Strait of Hormuz expires Monday evening, creating ongoing uncertainty.
Bitcoin (BTC) surged back above $71,000 on Monday, recovering from a weekend plunge that erased $60 billion from the total cryptocurrency market. The sharp decline was triggered by a threat from US President Donald Trump regarding Iran’s Strait of Hormuz.
Just 15 minutes after Trump’s post on Saturday, BTC dropped from $70,100 to $68,200. Consequently, over $240 million in leveraged crypto trades were liquidated within an hour.
Total liquidations crossed $1 billion by Sunday evening, with long positions suffering 85% of the damage. The market remained depressed near $68,200 for the rest of the weekend.
The crash occurred less than a day after Trump had told ABC News the war was ending “very soon.” However, his subsequent threat at 7:44pm New York time on Truth Social immediately reversed the brief rally.
This event underscored crypto’s role as one of the only large, liquid markets open during the announcement. Meanwhile, the Crypto Fear and Greed Index plummeted to nine, indicating “Extreme Fear.”
Analysts have already estimated Bitcoin’s hashrate has dropped roughly 100 EH/s since late February due to Iranian disruptions. Furthermore, Luxor Technology‘s Hashrate Index estimated Gulf states represent 8-10% of global hashrate.
As of Sunday evening, BTC was trading at a 23% year-to-date loss. Altcoins like Ethereum and XRP had lost 31% and 26% respectively over the same period.
Trump’s 48-hour deadline for a deal expires Monday at 7:44pm New York time. The market now awaits this geopolitical milestone.
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