Bitcoin fell below $63,000 as fresh fighting between the US and Iran pushed up oil prices, pushed up bond yields and reignited concerns that prolonged disruption in the Strait of Hormuz could keep inflation high.
data from crypto slate shows that the largest cryptocurrency was trading around $62,940, down about 1.4% in 24 hours. Other major digital assets including Ethereum, XRP, and Solana all recorded modest losses of less than 2% during the reporting period.
This price performance resulted in the liquidation of $252.9 million in crypto positions over the prior day, with traders holding leveraged long positions accounting for most of the losses, according to CoinGlass data. Such liquidations occur when exchanges automatically close under-collateralized trades, often accelerating the decline as prices pass through congested levels.
Bitcoin held up better than many Asian markets, but the idea that investors would treat it as a haven quickly disappeared. The move was in tandem with the rest of the risk trade, rocked by the same interest rate concerns that caused declines in tech stocks and other speculative assets.
Strait of Hormuz chokepoint causes macro-infection
The turmoil in the crypto market is just a symptom of broader macroeconomic shockwaves emanating from the Middle East. Global risk sentiment collapsed following weekend attacks by the US military on Iranian facilities.
current conflict It is almost entirely concentrated in the Strait of Hormuz. The Strait of Hormuz is It accounts for approximately one-fifth of the world’s offshore crude oil.
The waterway’s operational status remains hotly debated, creating a fog of uncertainty that energy markets traditionally abhor.
On X (formerly Twitter), the U.S. Central Command acknowledged that it had deployed fighter jets, naval vessels, and autonomous maritime drones to neutralize coastal radar networks, air defense systems, and missile launch capabilities.
U.S. military leaders also asserted that the corridor remains open for lawful commercial navigation and characterized the recent engagements as a necessary measure to protect civilian sailors from unwarranted hostility.
He further added:
“The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it. The U.S. military remains poised and prepared to ensure freedom of navigation for commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations.”
However, Iranian authorities have strongly disputed this theory, insisting that the strait is completely closed to international shipping.
Diplomatic rhetoric has sharpened dramatically, with Iranian parliament speaker MB Ghalibaf saying that “the era of unilateral agreements is over” and warning that the passage would only work under Iran’s strict administrative arrangements and that it would categorically reject the US transit ultimatum.
A prolonged closure would limit exporters’ ability to bypass the strait with pipelines, tightening oil supplies and raising freight and insurance costs.
At Polymarket, traders are pricing in just a 3% chance that traffic will meet the contract’s recovery criteria by July 31st. The market will take a yes if IMF Portwatch reports a seven-day rolling average of at least 60 vessel calls on any date up to July 31. Otherwise, it will be resolved with “no”. As of this writing, the deal has a trading volume of more than $16 million.
Oil shock revives interest rate risk
The standoff at sea has pushed up oil prices, with Brent crude up as much as 4% to near $80 a barrel.
The hike reignited concerns that rising energy costs could keep inflation above the Federal Reserve’s target and slow the transition to lower interest rates.
Therefore, the immediate risk for Bitcoin traders is not only an escalation of the conflict, but also the possibility that a sustained rise in oil prices could change the outlook for US monetary policy.
Rising oil prices could impact transportation, manufacturing and consumer costs. If these pressures continue, the Fed could have less room to cut rates and come under greater pressure to further tighten policy.
While rising yields support demand for dollars and government bonds, they also increase the opportunity cost of holding non-yielding assets like Bitcoin and gold.
Minutes from the Fed’s June meeting show that while the committee ultimately kept the federal funds rate unchanged at 3.5% to 3.75%, some policymakers believe it is necessary to raise it. Officials also considered scenarios in which inflation remained high due to Middle East conflicts, tariffs and strong demand from investments in artificial intelligence.
Monday’s market reflected that concern. The two-year Treasury yield has risen to its highest level since February 2025, and futures suggest the Fed will tighten by about 39 basis points by the end of the year. Gold also fell as rising yields and a strong dollar outpaced demand for traditional assets.
This combination helps explain why Bitcoin has fallen despite increased geopolitical risks. Although cryptocurrencies can sometimes rise during periods of political or financial stress, their short-term performance remains sensitive to leverage, dollar liquidity, and expected interest rate movements.
South Korean chip loss leads Asia’s losses
The most violent reaction to the geopolitical premium unfolded across Asian stock exchanges, with an estimated $950 billion in market capitalization evaporated in a brutal trading session earlier today.
Bull Theory reported that the devastation was most pronounced in Seoul, where the benchmark KOSPI index plunged 9.2% and $377 billion in corporate value was wiped out. The severity of capital flight has forced exchange operators to suspend trading for the seventh time this year.
South Korea’s rout was concentrated in the semiconductor sector, which had previously enjoyed huge artificial intelligence-driven momentum. Memory chip giant SK Hynix suffered a 15% plunge, the biggest single-day decline in the company’s history.
The timing is particularly striking, coming just one business day after the company completed a $26.5 billion listing through American Depositary Receipts on Wall Street, making it the largest overseas debut in U.S. market history. The semiconductor giant’s stock is currently trading more than 35% below its June high.
The sudden reversal of fortunes highlights the immense volatility inherent in current artificial intelligence hardware trading, with huge capital inflows potentially evaporating at the first sign of macroeconomic distress.
Peer Samsung Electronics was also not spared, with a combined drop of nearly 11%. The broader KOSPI is currently down 28% from recent highs, marking its fourth straight week of declines.
The index is up 58% since the beginning of the year, but that’s a sharp decline from the 116% return it boasted earlier in the cycle.
Meanwhile, the market infection spread across the border to Tokyo, with the Nikkei Stock Average dropping 2.7% and about $236 billion in shareholder wealth being burned.
Additionally, Chinese stocks listed on the Shanghai Stock Exchange fell 2.3%, resulting in a loss of $210 billion. Taiwan’s tech market fell 3.1%, wiping out $127 billion, while India’s Nifty index recorded a relatively modest decline of 0.3%, shedding $14.7 billion.
(Tag translation) Bitcoin
