Bitcoin and the broader crypto market have lost more than $20 billion in value after President Donald Trump’s latest remarks on the Strait of Hormuz pushed oil prices higher and accelerated risk-off selling.
Summary
- Trump’s Strait of Hormuz remarks helped send Brent crude above $79 and fueled a sharp crypto selloff.
- Bitcoin fell more than 3% as the crypto market lost over $20 billion and liquidations topped $40 million.
- Traders now await U.S. CPI data and Fed Chair Kevin Warsh’s testimony for policy and market direction.
Trump’s comments have intensified pressure across global markets
President Donald Trump said on Monday that the United States was “taking over” the Strait of Hormuz and that other countries would have to pay Washington for protecting the vital shipping route. He also said recent negotiations had broken down despite what he described as progress during an earlier meeting.
“We’re taking over the Strait. They have nothing… yesterday, they had an 11-hour meeting… and everything was agreed to yesterday, and they leave the room, and they call back and they say, ‘we had to make a couple of change.”
Trump also warned Iran after the collapse of the ceasefire, adding that U.S. forces had carried out overnight strikes that destroyed key Iranian military equipment.
Following those remarks, Brent crude climbed above $79 per barrel after gaining nearly 5% as military exchanges between the United States and Iran continued. Iran announced that it had closed the Strait of Hormuz, although U.S. Central Command rejected that claim. Rising oil prices and geopolitical uncertainty weighed on global risk assets, including cryptocurrencies.
The latest market turbulence comes only hours after crypto.news reported that shares of American Bitcoin, the Bitcoin mining and treasury company backed by Eric Trump, had fallen more than 95% from their peak, according to Bloomberg.
The decline has erased more than $600 million from the value of Eric Trump’s roughly 6% stake. Bloomberg also reported that the company closed at a record low of $6.13 on July 10 after completing a 1-for-15 reverse stock split earlier this month.
Crypto liquidations have accelerated as traders await inflation data
Selling pressure quickly spread through digital assets, with Bitcoin falling more than 3% over several hours to trade at $62,389. During the same period, the cryptocurrency touched an intraday low of $62,120 after reaching as high as $64,340 over the previous 24 hours.
Ethereum, XRP, BNB, Solana, Hyperliquid, Zcash and Cardano also declined between 2% and 6% as investors reduced exposure to risk assets during the sharp market selloff.
According to CoinGlass, the downturn erased nearly $20 billion from the crypto market and triggered almost $40 million in liquidations across Bitcoin, Ethereum, SPCX, Solana, SNDK, Hyperliquid, MU and XRP positions. The derivatives data provider also reported that about 73,000 traders were liquidated over the past 24 hours.
CoinGlass further noted that the largest single liquidation occurred on Hyperliquid, where an XYZ:SKHX position worth approximately $4.86 million was closed.
Attention has now turned to this week’s U.S. economic events, with traders watching Tuesday’s consumer price index inflation report and testimony from Federal Reserve Chair Kevin Warsh for fresh signals on the central bank’s interest-rate path.
Those releases are expected to shape sentiment across financial markets as investors continue to assess the impact of escalating tensions in the Middle East.
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