Bitcoin came under renewed selling pressure on Sunday after U.S. President Donald Trump announced the return of an Iranian blockade in the Strait of Hormuz, one of the world’s most critical oil shipping routes. The renewed geopolitical tensions pushed investors toward safer assets, dragging Bitcoin below the $63,000 mark and raising concerns about the cryptocurrency’s short-term outlook.
The latest development has once again highlighted how global political events continue to influence crypto markets, especially during periods of heightened uncertainty.
Trump announces renewed Strait of Hormuz blockade
In a post published on Truth Social on July 13, President Donald Trump confirmed that the United States would reinstate an Iranian blockade in the Strait of Hormuz. According to Trump, the blockade will target Iranian vessels and their customers while allowing ships from other nations to continue using the strategic waterway.
He declared that the United States would act as the “Guardian of the Hormuz Strait”, promising to protect commercial shipping passing through the region.
Trump also announced that the U.S. would impose a 20% cargo fee on all shipments using American protection. He said the revenue would help cover the costs of maintaining security in one of the world’s busiest and most sensitive maritime corridors.
The policy takes effect immediately and follows earlier proposals by the administration to introduce transit fees after Iran discussed charging its own tolls on vessels moving through the Strait.
Bitcoin falls as investors react to rising geopolitical tensions
The renewed tensions quickly affected financial markets, with Bitcoin extending its recent decline.
The world’s largest cryptocurrency dropped nearly 3% over the past 24 hours, trading around $62,240 after briefly holding above $64,000 earlier in the week.
As geopolitical risks increase, investors often reduce exposure to riskier assets, including cryptocurrencies, while shifting capital toward traditional safe havens such as the U.S. dollar, government bonds, and gold.
The latest decline reflects growing uncertainty surrounding the Middle East conflict and its potential impact on global energy markets.
Technical indicators suggest sellers remain in control
Bitcoin’s technical outlook has weakened after the asset failed to maintain momentum above the 78.6% Fibonacci retracement level near $63,200.
The price has also slipped below its 50-day simple moving average, currently positioned around $64,650, while continuing to trade inside a descending channel that has guided price action since May.
Although the Chaikin Money Flow (CMF) indicator remains slightly positive, suggesting that some buying interest still exists, resistance between $63,200 and $64,600 continues to prevent a meaningful recovery.
On the downside, immediate support is located near the 20-day moving average around $61,870, followed by the important psychological level at $60,000.
Polymarket traders grow more pessimistic
Prediction market data also shows investors becoming increasingly cautious.
According to Polymarket, the probability that shipping through the Strait of Hormuz will return to normal before August 31 has dropped to just 16%, down sharply from nearly 48% earlier this month.
The decline reflects growing concerns that military tensions between Washington and Tehran could continue for an extended period.
Reports indicate that Iran has kept the Strait closed while attacks on commercial vessels have further increased uncertainty surrounding one of the world’s most important oil transportation routes.
Bitcoin outlook remains tied to geopolitical developments
Bitcoin’s short-term direction now depends heavily on developments in the Middle East.
If tensions continue to escalate, investors could remain cautious, keeping pressure on both cryptocurrencies and other risk-sensitive assets. However, any signs of diplomatic progress or easing conflict may help restore market confidence and support a recovery in Bitcoin prices.
For now, traders will closely watch both geopolitical headlines and Bitcoin’s ability to defend the key $60,000 support level, which remains critical for maintaining the broader recovery trend.
