Bitcoin gave back part of this week’s advance on Thursday, slipping below the $71,000 mark as markets weighed fresh doubts about the durability of a U.S.-Iran ceasefire and the broader geopolitical picture in the Gulf.
At 02:31 ET (06:31 GMT) Bitcoin was down 1.2% at $70,862.6, reversing some of the gains it had posted earlier in the week when both Washington and Tehran indicated they were open to a two-week ceasefire and in-person negotiations.
Initial optimism evaporated through Thursday as Tehran accused the U.S. and Israel of violating elements of its 10-point ceasefire proposal and insisted that Lebanon be included in any truce - a demand rejected by both the U.S. and Israel. Market participants also noted that the Strait of Hormuz, a focal point of the confrontation, remained largely closed despite earlier suggestions it might reopen.
U.S. President Donald Trump added to the uncertain backdrop on Wednesday evening by saying the United States would keep its military forces in the region until a "real agreement" was achieved. He reiterated calls for Iran to end its nuclear activities and to reopen the Strait of Hormuz.
The ceasefire news had sparked a sharp rally across crypto markets on Wednesday, but that momentum cooled the following day as broader risk-driven assets, including stocks and currencies, lost ground. Ether, the second-largest cryptocurrency by market value, fell 3.1% to $2,175.61, while XRP declined 3.8% to $1.3276. Other major altcoins recorded similar moves: Solana, Cardano and BNB were down in the 2.4% to 4% range. Among meme tokens, Dogecoin dropped 3.5% and the token $TRUMP lost 2.9%.
Geopolitical developments also intersected with energy and shipping concerns. Tehran was reported to be effectively keeping the Strait of Hormuz closed in response to hostilities from the U.S. and Israel. The passage is a strategic choke point for global energy flows, and its closure has been central to market attention during the dispute.
Adding another layer of market relevance, the Financial Times reported that Iran would seek to impose tolls denominated in cryptocurrency on vessels - including oil tankers - attempting to transit the strait. The FT cited comments from Iran’s Oil, Gas, and Petrochemical Products Exporters’ Union, indicating vessels attempting to cross would be assessed by Iran and could be required to pay a Bitcoin fee.
Domestic regulatory developments in the U.S. meanwhile remained an undercurrent for crypto markets. Lawmakers introduced the CLARITY Act, a U.S. bill intended to provide more regulatory certainty for the cryptocurrency industry, but the measure was not close to securing the votes required to pass Congress.
The combination of geopolitics, energy-route disruption and an uncertain regulatory path in the U.S. contributed to a cooling of the risk-on move that had propelled crypto prices earlier in the week. Traders and investors appear to be pausing to reassess exposures as events in the Gulf and Washington evolve.
Analysis summary
Bitcoin retraced after a sharp rally as doubts emerged about a proposed U.S.-Iran ceasefire and Iran effectively kept the Strait of Hormuz closed. Broader crypto assets fell alongside risk-sensitive markets, while the proposed CLARITY Act in the U.S. remained far from passing, leaving regulatory clarity unresolved. Reports that Iran would demand crypto-denominated tolls for transits added a novel link between geopolitics and cryptocurrency usage.