Donald Trump’s 48-hour ultimatum tied to the Strait of Hormuz is nearing expiry, and global markets remain under pressure. The crypto market shed $412 million over the past 24 hours, with Bitcoin accounting for $121 million in liquidations. Bitcoin has also fallen back below $68,000 as geopolitical risk keeps traders defensive.
Tensions around Hormuz keep risk assets under pressure
The report said Trump posted on Truth Social on March 22 that the U.S. could strike Iran’s power plants if the Strait of Hormuz is not fully reopened. That message lifted geopolitical tensions quickly. The Strait handles about 30% of global oil supply, so any disruption there can feed directly into higher energy prices.
Oil is now near $110 per barrel, down from a previous peak of $154. The pullback followed a move by the G7 and the International Energy Agency to release 400 million barrels from reserves to ease shortages. Iran, according to the same report, warned that any attack would bring retaliation against regional energy and oil infrastructure, a threat that could keep oil prices elevated.
Markets are pricing in two possible outcomes
Traders are focused on two paths. The first is some form of resolution or a partial reopening of the Strait. If shipping resumes and ceasefire talks begin to surface, Bitcoin and equities could see a short-term rebound. Even so, the report noted that analysts expect any upside to remain limited because inflation data is still ahead.
The second path is a failure to reach a deal, followed by renewed escalation. In that case, Bitcoin could slide toward the $66,000 to $67,000 area. A break below that zone may open the door to steeper losses. The logic is simple: stronger oil prices can intensify inflation fears, while tighter liquidity tends to weigh on risk assets.
ETF-driven gains have been erased
Since the start of the U.S.-Israel and Iran conflict, the crypto market has largely struggled and traded sideways, the report said. Last week, Bitcoin climbed to $76,000 on strong ETF inflows from institutional investors. Those gains have now been wiped out.
Traders are also watching upcoming inflation data closely. If inflation comes in hot, pressure on crypto and other risk assets may persist. If tensions cool, markets could get a brief relief move. Current price action is being treated as an early signal ahead of the deadline.