Bitcoin Falls After Escalation in the Strait of Hormuz

The latest drop came as tensions between the U.S. and Iran intensified around the Strait of Hormuz, with altcoins and derivatives taking a sharper hit than Bitcoin.

Key Takeaways

• Bitcoin dropped to $63,100 on Monday after tensions between the U.S. and Iran around the Strait of Hormuz flared up again.
• Altcoins came under heavier pressure; Lighter fell 8% and Hyperliquid dropped 3.3% to $65.1.
• $253 million was liquidated in 24 hours, with 76% of that coming from longs, while $62,000 remains an important support level.

The crypto market sold off on Monday during Asian and European trading hours after tensions between the U.S. and Iran around the Strait of Hormuz picked up again. Bitcoin slid to $63,100 (€55,200), down from a little above $64,300 (€56,300) at Sunday midnight UTC weekly close, while altcoins were hit even harder.

Risk-Off Hits Stocks Too

The pressure was not limited to crypto. In South Korea, the Kospi fell 9.2%, while SK Hynix dropped 15% after Friday's U.S. listing. The Nikkei and the SSE both lost more than 2%, and U.S. futures were pointing to a weaker open, with Nasdaq 100 futures and S&P 500 futures down 0.9% and 0.25%, respectively, since midnight.

The latest wave of caution is tied to renewed fighting between Iran and the U.S. over the Strait of Hormuz. Because that waterway is a major route for global oil shipments, any disruption there can quickly ripple through broader risk markets. In crypto, that usually means traders start trimming the positions that have run the hardest.

Altcoins Take the Hardest Hit

The sell-off was broader than Bitcoin alone. Lighter (LIT) led the decline with an 8% drop, marking its first major pullback after climbing more than 200% over the past two months. Hyperliquid (HYPE) fell about 3.3% to $65.1 (€57), its lowest level since July 2.

The derivatives market suggested the move was mostly about existing positions getting squeezed, not a fresh wave of leverage. Bitcoin open interest held steady at $17 billion (€14.9 billion), and the three-month annualized basis stayed at 3.8%. Funding rates were slightly positive across several venues, with Bybit as the exception. That points to a market that was not suddenly piling on new risk, but was still vulnerable to a broader risk-off shift.

Liquidations and Market Signals

According to Coinglass, $253 million (€221 million) was liquidated over the past 24 hours, with 76% coming from longs and 24% from shorts. Bitcoin made up $70 million (€61.2 million) of those liquidations, while Ethereum accounted for $60 million (€52.5 million). In the Binance liquidation heatmap, $62,000 (€54,200) stands out as a key level to watch if the price keeps sliding.

For European crypto readers, the main takeaway is that geopolitical shocks do not stop at stocks. They can move quickly into crypto derivatives and trigger liquidations across exchanges. The Strait of Hormuz is especially sensitive because any disruption there can hit oil prices almost immediately and shift the mood across risk assets. This time, Bitcoin held up better than many traditional indexes, showing that it can sometimes be relatively resilient during these episodes, even if the market remains exposed to sudden escalation. The latest move also fits the pattern that Bitcoin Stays Stable After New U.S. Strikes on Iran already showed earlier: geopolitical shocks can spark sharp volatility, but Bitcoin sometimes holds up better than stocks.