Bitcoin (BTC) dropped below $75,000 on April 19 as the Strait of Hormuz shut down entirely and Iran rejected a second round of negotiations with the United States.
The developments mark a sharp escalation in the US-Iran standoff, with zero oil tankers passing through the strait and diplomatic channels appearing to collapse.
Strait of Hormuz Shuts Down as Diplomacy Stalls
No oil tankers passed through the Strait of Hormuz, effectively closing the waterway that handles roughly 20% of global seaborne oil trade.
Reportedly, thirteen tankers had already turned back mid-route the day before, freezing shipping flows through the critical chokepoint.
Iran's state media confirmed that Tehran rejected participating in a second round of talks with Washington. Iranian officials cited what they called "deception" from President Trump, pointing to "inconsistency with what is actually happening" during negotiations.
The rejection came after the first round of talks in Islamabad ended without an agreement last week.
President Trump accused Iran of firing on ships in the strait in violation of the ceasefire agreement. He threatened to "knock out every single Power Plant, and every single Bridge, in Iran" if Tehran refuses a deal.
General sentiment is that both countries are on the verge of a new round of escalation, with futures markets set to open within hours.
Bitcoin has faced sustained pressure from the US-Iran conflict since February 28. The pioneer crypto previously fell from above $100,000 when Iran first moved to close the strait earlier this year. Amid Sunday's risk-off sentiment, the king of crypto fell below $75,000 for yet another time.
Rising oil prices and inflation fears have repeatedly pushed investors toward traditional safe-haven assets over crypto.
The coming hours may prove critical as futures markets open and traders price in the diplomatic breakdown.
Read the Original story Bitcoin Dips Below $75,000 as Strait of Hormuz Sees Zero Oil Tankers for First Time in History by Lockridge Okoth at beincrypto.com