Bitcoin declined to $79,000 on Monday following escalating geopolitical tensions between Iran and the United States, with Iranian state media claiming a successful missile strike on an American vessel while Washington disputed the account and authorized military personnel to engage Iranian Revolutionary Guard Corps speedboats and other targets.
The conflict intensified hours after Donald Trump announced that the U.S. would begin escorting ships through the Strait of Hormuz starting Monday, a strategic waterway critical to global oil supplies. The escalation triggered a broad selloff across digital assets, with Ethereum, Solana, and Dogecoin posting sharp declines as investors rotated away from risk assets amid heightened geopolitical uncertainty.
Crypto markets have historically reacted to Middle East tensions due to oil price volatility and broader macroeconomic concerns. The incident underscores how geopolitical flashpoints can create near-term headwinds for risk assets even as longer-term crypto fundamentals remain intact. Traders will monitor further developments in the Strait of Hormuz and any additional policy announcements from the Trump administration.