Crypto Market Crashes $20B as Trump Says US Is “Taking Over” Strait of Hormuz
Highlights
- President Donald Trump said US will defend the Strait of Hormuz and collect payments.
- Brent crude oil prices extend gains above $79 per barrel, causing crypto market crash to deepen.
- Bitcoin price extended losses and fell below $62,200.
President Donald Trump on Monday said the United States is “taking over” the Strait of Hormuz and countries “must pay” the US for defending. As a result, Brent crude oil prices extend gains above $79 per barrel, causing the crypto market and Bitcoin price to crash lower.
US Will Defend Strait of Hormuz, Expects Payment in Return: Trump
President Donald Trump said the U.S. will guard the Strait of Hormuz and expects countries to pay them. It sent Brent crude oil above $79 per barrel, triggering further selloffs across stock and crypto markets on July 13.
“We’re taking over the Strait. They have nothing… yesterday, they had an 11-hour meeting… and everything was agreed to yesterday, and they leave the room, and they call back and they say, ‘we had to make a couple of change,” said President Trump.
Trump also issued a sharp warning to Iran following the collapse of the ceasefire. He added that U.S. forces carried out major strikes overnight that destroyed key Iranian military equipment.
Oil prices climbed nearly 4% on Monday as the US and Iran continued to exchange strikes amid ongoing tensions over the Strait of Hormuz’s control. Iran also declared the strait closed, but it was rejected by the US Central Command.
As geopolitical tensions escalate and major economic decisions loom, trading volumes are surging on the best crypto prediction markets as participants bet on real-world outcomes.
Bitcoin Price and Broader Crypto Market Crash
Bitcoin price extended losses, tanking more than 3% over the past few hours. The price is currently trading at $62,389. The 24-hour low and high are $62,120 and $64,340, respectively.
Crypto market crashes further after Trump’s comments to take over the Strait of Hormuz, wiping out $20 billion from the market. Top altcoins Ethereum, XRP, BNB, Solana, Hyperliquid, Zcash and Cardano recorded 2-6% fall during the crypto market crash.
According to Coinglass data, the crypto market crash saw nearly $40 million in liquidations across Bitcoin, ETH, SPCX, SOL, SNDK, HYPE, MU, and XRP. Notably, 73k traders were liquidated in the past 24 hours. The largest single liquidation order of XYZ:SKHX valued at $4.86 million happened on Hyperliquid.
Traders are now awaiting the US CPI inflation data and Fed Chair Warsh’s testimony due Tuesday for clues on the Federal Reserve’s monetary policy path.
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