Bitcoin Falls to $71K as Trump Strait of Hormuz Blockade Order Hits Crypto Market

Bitcoin and other major cryptocurrencies fell on Sunday after U.S.-Iran peace talks failed and President Donald Trump announced a naval blockade in the Strait of Hormuz.

Bitcoin dropped 2.6% in 24 hours to about $71,093, after falling as low as $70,600 earlier in the day. Ethereum fell 3.6% to $2,202, XRP lost 2% to $1.33, and Solana dropped 3.25% to $82. The broader crypto market also declined, with the GMCI 30 index down 2.5%.

Analyst Rachael Lucas of BTC Markets said crypto was pressured by rising geopolitical tension after U.S.-Iran talks in Islamabad collapsed after 21 hours. Both sides blamed each other for the failed negotiations.

Markets were also shaken after Trump said he ordered a naval blockade of the Strait of Hormuz, a key global oil route. The move increased fears of a wider Middle East conflict and pushed investors away from risk assets like crypto.

Even with the sell-off, Lucas said the bigger picture for Bitcoin remains positive. She noted that spot Bitcoin ETFs saw $786 million in weekly inflows, their strongest week since February. BlackRock’s IBIT led the gains, while Morgan Stanley’s new MSBT fund brought in $46 million.

Bitcoin is now testing support between $70,500 and $71,000. The next resistance level is between $72,000 and $73,000.