Bitcoin (BTC) continued its downward trend into Saturday, with a notable impact from geopolitical tensions. The latest pressure stems from Iran’s announcement of new tolls for vessels passing through the Strait of Hormuz, a crucial chokepoint for global oil shipments, which has contributed to the decline in global risk assets. In total, this two-day selloff has erased over $80 billion from the cryptocurrency market, pushing Bitcoin’s price down to around $77,947, falling below the $78,000 mark.
Faced with a surge in liquidations, an estimated $620 million was wiped out in leveraged long positions over a 24-hour period. Analysts noted that the combination of profit-taking following the Senate Banking Committee’s approval of the CLARITY Act earlier in the week intensified the selling pressure. The Act had briefly elevated Bitcoin prices above $82,000 on Wednesday; however, the formal vote negated the catalyst for further upward movement, leading traders to realize profits.
Analyst Crypto with Harris characterized the market reversal as a standard profit-taking response, highlighting that traders had been anticipating positive regulatory developments for weeks. With the CLARITY Act passed, the momentum shifted, and many investors opted to cash in on their gains.
Moreover, predictions for a more conciliatory approach to tariffs during the U.S.-China summit also proved unfounded. President Trump clarified that no such discussions had occurred, further dragging down both U.S. equities and cryptocurrency markets.
As the market reacted to these developments, the total liquidations continued to mount, with a significant number of long positions accounting for the losses. Over the past day, longs accounted for more than $469 million in liquidated positions.
Iran’s plans to impose fees on shipping in the Strait of Hormuz have added additional geopolitical stress. Iranian official Ebrahim Azizi outlined the framework for the tolls, stating that only commercial vessels cooperating with Iran would benefit from these new arrangements. Reports have emerged indicating that vessels from China, Japan, and Pakistan have already navigated the strait under Tehran’s authority, while several European operators are seeking similar clearances.
Internally, Iran faces escalating economic challenges, with crude oil exports plummeting by over 80% since mid-March. This decline has led to fuel rationing, resulting in long queues at filling stations and an expanding black market for gasoline.
While some traders expressed concern over the potential implications of Iran’s fee system, others pointed out the broader bear trend influencing Bitcoin’s price. Analyst Ivan on Tech argued that a bearish sentiment has dominated since October, suggesting that neither positive news nor negative developments have significantly impacted market dynamics. Until a substantial trend reversal occurs, traders should remain cautious.
Market speculation indicates traders are bracing for a bearish phase to persist, with Kalshi predicting a 60% chance that Bitcoin will drop below $75,000 before the end of the month. Bitcoin is now trading approximately 38% lower than its past peak of $126,080 in October, demonstrating the ongoing interplay between macroeconomic developments and cryptocurrency valuations.
