Bitcoin fell below $64,000 after rising above $65,000 earlier in the session, as renewed tensions between the United States and Iran added pressure to financial markets. BTC is trading near $63,973, down 1.78% over the past 24 hours, with selling increasing after the price failed to hold the $65,000 area.
The decline came as Iran warned that the Strait of Hormuz could remain closed unless Washington changes its position on the conflict and blockade. Reports citing an Iranian source also claimed Tehran could keep the waterway closed until the end of U.S. President Donald Trump’s term in 2029, although the claim has not been independently confirmed.
Bitcoin Falls as Sellers Return Near $65,000
Bitcoin reached roughly $65,250 earlier in the session before sellers pushed the cryptocurrency below $64,500. The decline later moved toward $63,800, leaving BTC close to its session low as traders assessed renewed geopolitical and market risks. However, as of press time, BTC had received above $64k despite being down 1.70%.
The latest move has erased much of Bitcoin’s earlier recovery and placed $63,800 among the key near-term levels. A sustained break below that area could keep attention on lower prices, while $65,000 remains a key level after sellers rejected the earlier move above it.
The broader crypto market also weakened, with total market capitalization falling by about $30 billion. More than $50 million in long positions were liquidated within an hour as Bitcoin moved lower, adding to selling pressure across digital assets.
Iran Raises Pressure Over Strait of Hormuz
Iranian Foreign Ministry spokesman Esmail Baghaei said the United States must lift its naval blockade before Tehran can fully reopen the Strait of Hormuz. He said, “As long as the U.S. naval blockade continues, the necessary conditions for the reopening of the Strait of Hormuz do not exist.”
The comments came after President Donald Trump said the United States would seek compensation from Iran for Americans killed or seriously wounded in past conflicts. Trump also said any future negotiations with Tehran should include the compensation demand.
Trump wrote that Iran had raised compensation for damage caused during the recent conflict but said the issue had not been raised during earlier negotiations. He then stated, “I am likewise demanding compensation from Iran,” referring to Americans killed or injured in past attacks.
Reports that Iran could keep the Strait of Hormuz closed until 2029 remain unconfirmed. The reported demands also include compensation, the release of frozen assets, sanctions relief, a U.S. troop withdrawal from the region and an end to the naval blockade.
Oil Rises as Bitcoin Faces Macro Pressure
Oil prices also moved higher as uncertainty over the Strait of Hormuz increased. West Texas Intermediate crude settled near $82.13 per barrel, while Brent crude ended around $87.72, with both benchmarks gaining about 5% during the session.
The Strait of Hormuz remains a key route for global energy shipments, making developments around its reopening closely watched by financial markets. Iran and Oman are also holding talks over shipping routes, while Tehran continues to demand changes to the current blockade.
Bitcoin is also facing a separate market catalyst this week as investors prepare for upcoming U.S. inflation data. Consumer Price Index and Producer Price Index releases could affect expectations around monetary policy and broader risk appetite.
Source: Cryptoquant
Bitcoin ownership data offers a mixed picture. Wallets holding more than 10,000 BTC accumulated about 46,420 BTC on August 9, the highest level since March 15. Meanwhile, addresses holding between 0.1 and 1 BTC recorded roughly 9,700 BTC in net distribution.
The contrast leaves Bitcoin facing selling pressure near $64,000 while larger holders continue adding exposure. Peter Schiff also argued that rising gold and silver prices could weigh on Bitcoin, stating that “the more gold goes up, the more Bitcoin will go down.”
