Bitcoin (BTC) Price: BTC Dips Below $71K as US Blockades Strait of Hormuz After Iran Peace Talks Fail

TLDR

• Bitcoin fell to a low of $70,623 on Sunday after the US announced a blockade of the Strait of Hormuz
• Peace talks between the US and Iran collapsed after Iran refused to end its nuclear weapons program
• Oil jumped 9.5% to $105 per barrel within 30 minutes of US futures markets opening
• Bitcoin futures Open Interest dropped to $51.39 billion, down from $54.82 billion the day before
• Despite the conflict, BTC is up 7.4% since the US-Iran war began on Feb. 28

Bitcoin dropped to $70,623 on Sunday after the US announced a naval blockade of the Strait of Hormuz. The move came after peace talks between the US and Iran broke down over the weekend.

US President Donald Trump confirmed the blockade in a post to Truth Social. He said Iran refused to end its nuclear weapons program, calling it the only issue that “really mattered.”

Vice President J.D. Vance had announced Saturday night that talks in Pakistan failed to produce an extended ceasefire. Bitcoin was trading above $73,000 for most of Saturday before pulling back sharply.

After the blockade announcement, BTC slid to around $70,900 — down 2.5% over 24 hours. It fell further to $70,623 when US futures markets opened on Sunday.

Oil surged 9.5% to $105 per barrel within 30 minutes of the market open. Brent crude hit $98 on Monday as the standoff continued.

Bitcoin Holds Above $70,000

By Monday, Bitcoin had bounced back above $71,000, holding above its 50-day Exponential Moving Average (EMA) at $70,753. The 50-day EMA is acting as a near-term support level.

Bitcoin futures Open Interest fell to $51.39 billion on Monday, according to CoinGlass data. That’s down from $54.82 billion the day before, pointing to reduced risk appetite among traders using leverage.

The Relative Strength Index (RSI) sits at 54, showing modest positive momentum. The MACD remains in positive territory, suggesting selling pressure is easing.

BTC Performance Since the War Began

Bitcoin is up about 7.4% since the US-Iran conflict started on Feb. 28, when a US airstrike killed Iranian Supreme Leader Ayatollah Ali Khamenei. Bitcoin was trading around $71,194 at the time of writing.

That puts Bitcoin ahead of both the S&P 500 and gold over the same period.

The Strait of Hormuz handles around one-fifth of global oil trade. Disruption there has rattled financial markets for the past six weeks.

A daily close above $73,000 could open a path toward $75,623 — the 23.6% Fibonacci retracement of Bitcoin’s $126,200 to $60,000 decline. Key downside support remains at the 50-day EMA near $70,753. A break below that level could expose a move toward $60,000.

Bitcoin’s all-time high of $126,080 was set in October.

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