Bitcoin (BTC) erased a week's worth of gains in a single day Sunday, sliding to $69,192 - down 2.2% in 24 hours and 3.1% for the week - after President Donald Trump threatened to strike Iran's power plants within 48 hours if the Strait of Hormuz is not reopened.
The announcement wiped $299 million in crypto positions across 84,239 traders, per CoinGlass data, with long positions absorbing roughly 85% of the damage.
Trump's Truth Social post came less than 24 hours after he had suggested the U.S. was "considering winding down" its military campaign in the Middle East - a reversal that wrong-footed a market that had spent eight consecutive days building bullish positioning.
BTC had briefly reclaimed $70,000 before the ultimatum hit.
Liquidations and Altcoin Damage
Bitcoin longs sustained $122 million in losses; Ethereum longs lost $95.7 million. The largest single liquidation was a $10 million BTC-USDT swap on OKX.
Major altcoins fell in lockstep: Ethereum (ETH) dropped 1.8% to $2,114, Ripple (XRP) lost 2.5% to $1.41, Solana (SOL) fell 2.1% to $88.55, BNB Chain (BNB) slid 1.4% to $633, and Dogecoin (DOGE) dropped 2.7% to $0.092.
The only two large-cap assets that held positive weekly returns were Ether (+0.8%) and Solana (+0.7%). Bitcoin touched an intraday low of $68,241.
Total cryptocurrency market capitalization sits near $2.36 trillion, down roughly 2.3% on the day per CoinMarketCap. Bitcoin's dominance remained elevated at 58.2%.
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Energy Shock and Macro Backdrop
Brent crude climbed to $112.19 per barrel Sunday - up 36% over the past month - as the Strait of Hormuz, which handles roughly 20% of global oil and gas flows, remains effectively closed to commercial shipping.
Higher energy prices reinforce the case for rates staying elevated longer, compressing liquidity available for risk assets.
Market pricing now reflects an estimated 50% probability of a Federal Reserve rate hike by October, per reports cited by regional outlets.
Trump's 48-hour deadline expires Monday. A fresh escalation, or an unexpected de-escalation, will likely set the tone for Bitcoin's direction through the rest of the trading week.
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