Bitcoin has fallen below the psychological $76,000 level as U.S. President Donald Trump has rejected Iran’s latest proposal to end the war. The U.S. president is also reportedly preparing to extend the blockade of the Strait of Hormuz, which is also contributing to BTC’s downtrend today.
Trump Rejects Iran’s Latest Offer, Bitcoin Slides Below $76,000
According to an Axios report, President Trump has rejected Iran’s proposal to first reopen the Strait of Hormuz and lift the U.S. blockade, while postponing the nuclear talks to a later stage. Instead, the president has said that he will keep the Hormuz Strait under the U.S. blockade until Iran agrees to a deal that addresses the U.S. concerns about the country’s nuclear program.
Bitcoin has dropped below $76,000 on the back of this development, which could again escalate tensions between the U.S. and Iran. The BTC price is currently trading at around $75,700, down from an intraday high above $77,000, according to TradingView data.
As CoinGape reported earlier, Bitcoin and the broader crypto market are experiencing significant volatility amid stalled U.S.-Iran peace talks. President Trump had canceled his envoys’ trip to Pakistan for the second round of peace talks over the weekend.
Now, the president appears content with simply keeping the blockade at the Strait of Hormuz in force until Iran puts forward a deal that also addresses the country’s nuclear program. He told Axios that he sees the blockade as “somewhat more effective than the bombing.”
Meanwhile, President Trump also posted a Truth Social post, which contained an image with the caption, “NO MORE MR. NICE GUY.” He also told Iran to “better get smart soon,” as they are so far showing that they don’t know how to sign a non-nuclear deal.
Strikes Against Iran Still On The Table
Axios also reported that the U.S. Central Command (CENTCOM) has prepared a plan for a “short and powerful” wave of strikes on Iran in hopes of breaking the negotiating deadlock. This also poses a risk to the Bitcoin price and the broader crypto market, as it could further escalate tensions between the two sides.
According to the report, these strikes would likely include infrastructure targets after which the U.S. would press Iran to return to the negotiating table and show more flexibility. However, for now, President Trump reportedly sees continuing the blockade as his best bet to pressure Iran into a deal and would only consider military action if Iran doesn’t cave.
According to a Reuters report, President Trump has also discussed ways to mitigate the impact of a possible months-long blockade of the Strait of Hormuz, suggesting the blockade could remain in place for some time. Amid this development, oil prices are rising to new highs, which is also weighing on Bitcoin and the broader crypto market.