Bitcoin slipped below $69,000 on Tuesday as risk sentiment weakened ahead of a deadline set by U.S. President Donald Trump for Iran to reopen the Strait of Hormuz or risk military action.
The cryptocurrency was last down 0.8% at $68,525.1 as of 03:06 ET (07:06 GMT).
It had briefly climbed above $70,000 on Monday on hopes of a ceasefire, but was unable to sustain the gains.
Traders on edge as Trump’s deadline for Iran draws near, stoking fears of U.S. strikes and market volatility.
Markets are bracing for possible U.S. strikes on Iran as a deadline set by President Donald Trump approaches.
Sentiment worsened after Iran rejected a U.S.-backed ceasefire plan, instead calling for broader terms, increasing fears of escalation.
Trump has warned Iran could be “taken out” if it fails to comply by his 8 p.m. ET deadline, including potential strikes on critical infrastructure such as power plants and bridges.
The standoff has rattled global markets, pushing oil above $110 per barrel as concerns grow over disruptions in the Strait of Hormuz, a key route for global crude supply.
Rising energy prices have intensified inflation worries and boosted demand for safe-haven assets like the U.S. dollar.
Bitcoin has been trading more closely with overall risk sentiment, with geopolitical tensions outweighing earlier hopes for diplomatic progress.
Attention is now shifting to upcoming U.S. inflation data, especially Friday’s CPI report, which is expected to show upward pressure from higher energy costs—potentially keeping interest rates elevated for longer, a backdrop that could weigh further on Bitcoin.
Most altcoins extended losses on Tuesday as risk-off sentiment persisted in crypto markets.
Ethereum, the second-largest cryptocurrency, fell 1.5% to $2,103.92, while XRP dropped 2.4% to $1.31.
Solana and Polygon each declined about 3%, and Cardano lost more than 4%.
Among meme tokens, Dogecoin also fell 1.5%.
Sources: Ayushman Ojha
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