Bitcoin Price Falls Below $71K as Iran Ends U.S. Talks and Threatens Hormuz Blockade

Bitcoin price fell below $71,000 on Monday as geopolitical tensions between the United States and Iran weighed on digital asset markets. BTC traded near $71,040, down about 3%, after briefly falling to around $70,830.76 during rapid intraday movement. The latest decline followed reports that President Donald Trump said the U.S. Navy would continue its blockade of the Strait of Hormuz. At the same time, Iran reportedly ended all negotiations with the United States and threatened to “completely” block the Strait of Hormuz. Iran also threatened to block the Bab el-Mandeb Strait, another major maritime route. Iran said it was ending talks because of repeated ceasefire violations, including Israeli strikes in Lebanon. The move marked a sharp change from nine days earlier, when Trump said a deal with Iran was expected “shortly.” Crypto markets reacted by reducing exposure to risk assets, with Ethereum also falling below $2,000. Bitcoin Slides as U.S.-Iran Tensions Rise The Strait of Hormuz remains a key route for global energy shipping, making developments in the region closely watched by financial markets. Renewed concerns over energy prices and liquidity conditions added pressure to Bitcoin and other high-beta assets. The latest geopolitical update included reports of stricter U.S. terms for Iran, including demands linked to control of the Strait of Hormuz and removal of highly enriched uranium. Iran’s negotiating team reportedly paused active message exchanges through mediators, citing military escalation in the region. Fresh military activity also added to market caution. Reports noted that U.S. action against Iranian radar and drone facilities, followed by Iranian retaliation against a U.S. base. Treasury Secretary Scott Bessent also said the U.S. had seized about $1 billion in Iranian cryptocurrency. Bitcoin’s decline came during a period when traders were already watching the $71,000 support area. A daily close below that level could bring the $70,000 zone into focus. Further selling may expose support near $68,000 and the wider $66,000 to $65,000 area. Strategy Bitcoin Sale Adds to Market Attention The market decline also followed news that Strategy sold 32 BTC for about $2.5 million between May 26 and May 31. The sale was made at an average price of $77,135 per coin and was used to help fund preferred stock dividend payments. The sale marked Strategy’s first Bitcoin disposal since December 2022. The company still holds 843,706 BTC, acquired for about $63.87 billion at an average price of $75,699 per coin. The sale represented a small share of total holdings but drew attention because Strategy has long been viewed as the largest public corporate Bitcoin holder. Crypto analyst Michaël van de Poppe has said the fear around Strategy selling Bitcoin may now be behind the market. He argued that once a feared event happens, traders may stop pricing in the same risk. The broader market reaction remained cautious as Bitcoin stayed near short-term support. Source: Santiment Bitcoin network data also showed lower user activity compared with the 2021 bull market. Active addresses were around 624,000 per day, down from about 1.12 million in May 2021. New wallets were near 278,000 per day, compared with about 489,000 during the same earlier period. Is Bitcoin Price Going to Drop Further? Glassnode data showed mixed network conditions. Bitcoin transfer volume rose 31% to $4.6 billion, and fee revenue increased 17%. However, monthly realized cap growth dropped 57% toward near-zero, suggesting limited fresh capital entering the network. Spot market data showed stronger selling pressure. Cumulative volume delta turned negative, while momentum weakened. Futures open interest stayed near $36.7 billion, but the cost of holding long positions increased, showing that bullish traders were paying more to remain exposed. ETF flows remained one of the main pressure points, with net outflows nearly doubling to $1.3 billion and trading volume rising to $10.9 billion. Into The Cryptoverse founder Benjamin Cowen offered a different explanation for Bitcoin’s weakness. He argued that geopolitical tensions and the Strategy’s Bitcoin sale may be masking a broader cycle pattern already visible in the chart. Source: X Cowen said Bitcoin’s current structure still fits the four-year cycle model. According to his view, the cycle peak near $126,200 in October 2025 came around day 1,162 from the prior bottom, matching earlier cycle timing. He described the spring rebound in March and April as a countertrend move after January and February weakness. According to him, Bitcoin failed to hold above the 200-day simple moving average, which he views as an important technical level. He said the recent rebound lasted about 16 weeks, placing it within the range often seen before another move lower in past cycle corrections. He also pointed to June weakness during U.S. midterm election years. While some data show positive average June returns, Cowen said those figures are lifted by strong outlier years. In his cycle model, the Bitcoin price could retest or break the February local low near $60,000 before forming a deeper bottom later in 2026.