Bitcoin and Ethereum prices have again dropped more than 2% today after U.S. President Donald Trump declared the ceasefire with Iran was “over.” This came after the U.S. launched strikes in response to Iran’s attacks on three commercial vessels in the Strait of Hormuz.
Following this news, as oil jumped 6%, Bitcoin fell to $61,700, and Ethereum slipped below $1,740.
Speaking at the NATO summit, U.S. President Donald Trump said the ceasefire agreement with Iran was now finished.
“To me, I think it’s over. I don’t want to deal with them anymore. Dealing with Tehran is a waste of time.”
According to the U.S. military, more than 80 targets were hit after Iran attacked three commercial vessels passing through the Strait of Hormuz, including ships linked to Qatar and Saudi Arabia.
Iran quickly responded by accusing the U.S. of violating the agreement. Parliament Speaker Mohamad Bagher Ghalibaf said the U.S. had broken the ceasefire agreement by launching fresh attacks, bringing back oil sanctions, and continuing military action in the region.
Also Read : Bitcoin (BTC) Price Prediction 2026, 2027 – 2030
The U.S.-Iran conflict is not the only reason behind the Bitcoin price drop. Stablecoins, which are often called the cash of the crypto market, have seen a shrink in the cash flow.
Since 2020, Bitcoin has gained an average of 5.2% in 30 days and 18.9% in 90 days when the stablecoin supply was growing. But when the supply shrank, those gains dropped to 1.1% and 8.4%
Since its $321 billion peak, stablecoin supply has fallen about 4.4%. During the 2022-23 bear market, stablecoin supply dropped 34%, while Bitcoin lost 43%.
For now, the drop is much smaller than in 2022, and trading is slowly improving. But if stablecoin supply keeps falling, Bitcoin could see more selling and further price declines.
Analyzing the recent market conditions, well-known crypto analyst Ali Martinez said Bitcoin is still trading inside a descending channel on the four-hour chart after facing rejection near the upper resistance around $63,600.
He says that, if selling pressure continues, “Bitcoin could trigger a pullback toward $59,700, with $56,550 as the next downside target.”
However, if Bitcoin reclaims $63,600 with strong buying volume, it could invalidate the bearish setup and signal the start of a bullish move.
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