Iran Reportedly Halts US Talks, Vows to Block Hormuz — BTC Drops to 7-Week Low With Retail Blaming Michael Saylor

• Iran on Monday reportedly suspended negotiations with the U.S. and threatened to block the Strait of Hormuz.
• Oil prices surged more than 7% following reports of a potential closure of the critical shipping route.
• Bitcoin’s price dropped to a seven-week low, with retail traders also blaming Strategy’s sale of Bitcoin for the weakness in cryptocurrency markets. 

Bitcoin (BTC) fell to a seven-week low on Monday after reports that Iran had suspended negotiations with the U.S. and threatened to fully block the Strait of Hormuz, triggering a surge in oil prices.

Bitcoin’s price dropped nearly 3% in the last 24 hours to around $71,300 and was the top trending ticker on Stocktwits at the time of writing. The last time it was trading that this level was in early April. Retail sentiment around the apex cryptocurrency fell lower within ‘extremely bearish’ territory, while chatter stayed at ‘normal’ levels. 

Retail Traders More Focused On Saylor’s Bitcoin Sale

While geopolitical tensions weighed on risk assets broadly, many retail traders on Stocktwits focused their frustration on Strategy chairman Michael Saylor following the company's first Bitcoin sale since 2022.

Several users said that the sale added to growing doubts about Bitcoin's role as a hedge asset, pointing to billionaire investor Mark Cuban's decision to exit Bitcoin holdings.

Strategy sold 32 BTC last week for approximately $2.5 million, which only amounts to around 0.0038% of its total holdings of over 840,000 Bitcoin.

Iran Escalation Sparks Oil Rally

According to Iran's state-affiliated Tasnim news agency, Tehran has halted indirect communications with Washington and is considering a complete closure of the Strait of Hormuz in response to ongoing ceasefire violations.

The report said that no negotiations will take place until Israel withdraws from occupied areas in Lebanon and halts military operations in both Lebanon and Gaza. It added that Iran and its allies have resolved to completely block the Strait of Hormuz and activate additional pressure points, including the Bab al-Mandeb Strait.

This comes after President Donald Trump said Monday morning that Iran “really” wants to make a deal.

Oil prices climbed after the development. Brent crude oil prices rose over 6% to over $97 per barrel , while U.S. West Texas Intermediate (WTI) prices gained 7.6% to trade at over $94 per barrel. The United States Oil Fund (USO) gained more than 7% in morning trade, with retail sentiment trending in the ‘bearish’ zone over the past day.

Altcoins Join Bitcoin Selloff

The slide in Bitcoin pulled Ripple’s XRP (XRP) below $1.30, Solana (SOL) below $80. BNB (BNB) took the biggest hit, falling 6.3% in the last 24 hours to around $675. Ethereum (ETH) continued to slide below $2,000.

CoinGlass data showed that the cryptocurrency market saw over $500 million in liquidations over the last 24 hours, with $100 million in just the last hour. 

Bitcoin’s price is currently 43% below its record high of over $126,000 seen in October last year. The apex cryptocurrency  has lost over 30% in the last 12 months and is down over 18% so far this year. 

Read also: Trump Says 'Iran Really Wants To Make A Deal'— But BTC Is Still Down, Oil Is Still Up, And ETFs Are Still Bleeding

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