Bitcoin experienced a significant decline over the weekend, falling 2.2% to $69,192 by Sunday morning. This drop comes in the wake of U.S. President Donald Trump’s 48-hour ultimatum to Iran, demanding the reopening of the Strait of Hormuz or facing potential military strikes on its power plants.
Trump’s aggressive stance marks a sharp escalation from his previous comments on Friday, where he suggested a de-escalation of military operations. The sudden shift in tone has rattled the cryptocurrency market, which had been buoyed by optimism earlier in the week.
According to CoinGlass, the market saw a staggering $299 million in liquidations within 24 hours, with long positions suffering the most, accounting for approximately 85% of the total losses. Bitcoin longs faced $122 million in liquidations, while Ether longs lost $95.7 million. The largest single liquidation recorded was a $10 million BTC-USDT swap on the OKX exchange.
Other major cryptocurrencies followed Bitcoin’s downward trend. Ether fell by 1.8% to $2,114, XRP decreased by 2.5% to $1.41, and BNB dropped 1.4% to $633. Solana and Dogecoin also saw declines of 2.1% and 2.7%, respectively. Only Ether and Solana managed to post slight gains over the week.
The looming deadline for Iran to comply with Trump’s demands could lead to military action, raising concerns about potential strikes on civilian energy infrastructure. Currently, the Strait of Hormuz remains largely closed to commercial shipping, disrupting about 20% of global oil and gas flows.
Last week’s rally, which peaked at $75,912, now appears to have been driven by speculation surrounding a ceasefire, which has since diminished. Despite the Federal Reserve’s decision to maintain interest rates with a dovish outlook, ongoing geopolitical tensions have made traders hesitant to take significant risks.
In related market movements, XRP fell approximately 2.6% to around $1.41 after breaking below the $1.44 support level. This decline is part of a broader downtrend that has persisted since mid-2025, with traders closely monitoring the $1.40 support zone. A failure to hold this level could lead to further declines toward $1.30 to $1.32.
Bitcoin's recent decline is attributed to geopolitical tensions following Trump's ultimatum to Iran, resulting in significant market liquidations. As traders react to the potential for military action, other major cryptocurrencies also faced losses, highlighting the fragile state of the crypto market amid ongoing uncertainty.