Bitcoin dropped nearly 3% into the $62,000 range on Monday after a weekend escalation between U.S. and Iranian forces revived fears of an energy crisis. The slide cut the total crypto market cap to $2.24 trillion and wiped out more than $322 million in leveraged positions.
Bitcoin plunged from a 24-hour peak of $64,385 late Sunday to $62,037 by 10:15 a.m. EST Monday, as a weekend exchange of gunfire between U.S. and Iranian forces threatened to trigger another energy crisis. The move reversed earlier gains for the top cryptocurrency.
Bitcoin retreats below $63,000
An attempt to reclaim the $63,000 level failed, and a fresh sell-off pushed Bitcoin back to $62,200, leaving it down nearly 3%. Its market capitalization fell from $1.28 trillion to about $1.25 trillion as of 12:40 p.m. EST, which in turn trimmed the crypto economy's aggregate market cap to $2.24 trillion.
The drop forced $83 million in long liquidations against $12 million in shorts on Bitcoin. Across the wider crypto market, liquidations topped $322 million, with long bets accounting for $267 million of that total as leverage unwound.
Iran conflict lifts oil prices
The pressure followed a sharp military escalation. The U.S. military struck more than 100 targets across Iran on Sunday, saying the strikes answered Iranian attacks on shipping vessels transiting the Strait of Hormuz. Iran rejected the allegations and launched retaliatory strikes on U.S. bases across five Gulf countries, including Qatar and Oman.
The renewed fighting came days after President Donald Trump declared the ceasefire between the two sides over and accused Tehran of violating a memorandum of understanding that requires Iran to reopen the Strait of Hormuz. In response to the escalation, oil prices jumped 4.5%, pushing Brent crude past $80 per barrel.
Energy inflation in focus
Analysts said concern is spreading beyond crude prices toward disruptions in refining capacity and fuel supply chains. According to a Bitunix analyst: “energy inflation may prove more persistent than markets currently anticipate”, warning that gasoline and diesel prices could stay elevated even if crude stabilizes.
For crypto, the analyst said the central question extends beyond whether U.S. inflation rises to whether global capital costs keep climbing. Reclaiming and holding above $64,000 could improve short-term momentum, but continued pressure from higher capital costs may keep Bitcoin locked in a broader consolidation range.
Source: Bitcoin News
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