Bitcoin drops below $64,000 as Hormuz deal uncertainty grows

Bitcoin fell below $64,000 on Monday, extending declines from last week’s peak as uncertainty over a potential Hormuz Strait shipping deal dampened risk appetite and prompted additional strategic coin sales.

The world’s largest cryptocurrency by market value dropped to $63,800 in early European trading, according to market data, after briefly climbing above $67,000 late last week. Analysts cited a combination of profit-taking and renewed caution in global risk markets as key drivers of the pullback.

Geopolitical developments in the Middle East, particularly around the Hormuz Strait—a critical chokepoint for oil shipments—have weighed on investor sentiment. Hopes for a de-escalation in regional tensions had supported risk assets earlier in the week, but those expectations faded as diplomatic efforts stalled. Traders noted that renewed uncertainty typically leads to reduced exposure in speculative assets like Bitcoin.

In addition to macro headwinds, on-chain data showed that a major wallet associated with a known strategic holder transferred approximately 2,000 Bitcoin—worth around $128 million at current prices—to exchanges over the weekend. Such movements are often interpreted as potential selling pressure, though the wallet’s identity and intent remain unverified.

Market participants also pointed to broader profit-taking after Bitcoin’s recent rally, which saw the cryptocurrency gain nearly 15% over the past month. The pullback comes as traditional financial markets remain volatile amid shifting expectations around U.S. interest rate cuts and mixed economic data.

Technical indicators suggested Bitcoin was testing support levels around $63,000, a level that had previously acted as resistance during the cryptocurrency’s upward move. A sustained break below this level could accelerate selling pressure, traders said.

The decline in Bitcoin followed a broader retreat in digital assets, with the total cryptocurrency market capitalization falling by about 3% over the past 24 hours. Ethereum and other major altcoins also traded lower, though losses were less pronounced than for Bitcoin.

Investors will be watching closely for further developments on the Hormuz Strait negotiations, as well as any additional large-scale transfers that could signal further strategic selling.