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Bitcoin fell roughly 2% to around $68,500 in early Tuesday trading, wiping out Monday’s brief push above $70,000. The selloff was not driven by a change in market fundamentals, with geopolitical risk remaining the dominant factor.
Monday’s move higher was supported by forced positioning. CoinGlass data cited in the article said over $145 million in forced short liquidations helped power the rally. With no new capital flowing in to sustain the gains, the bounce proved fragile.
The immediate catalyst for Tuesday’s risk-off tone was a looming deadline set by President Trump for Iran to accept a deal or face expanded military action. Tehran rejected a ceasefire proposal relayed through Pakistan, maintaining demands for sanctions relief, reconstruction aid, and a permanent end to hostilities. With diplomatic talks stalled, markets reacted quickly.
In related markets, oil surged past $113 per barrel on threats to strike Iranian infrastructure, while gold rose to $4,654 an ounce as investors sought safety. In crypto, prices partially recovered: Bitcoin edged back toward $68,957 and Ethereum stabilized around $2,115. BNB slipped 0.6% to $600, and XRP fell a similar amount to $1.32. The global crypto market capitalization held near $2.44 trillion, down about 0.2%.
Bitcoin has repeatedly stalled at the $70,000 level since late February, when Iran-related geopolitical tensions first began weighing on risk assets. The article notes that each attempt toward this zone tends to attract sellers, with thin liquidity contributing to the pattern.
Attention is now focused on the Strait of Hormuz, described as a critical global energy corridor at the center of ongoing ceasefire discussions. Any disruption there would likely worsen the broader macro outlook. As long as crypto continues to trade in line with wider risk assets, Bitcoin remains exposed to each new escalation.
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