Bitcoin’s value fell to $79,074 during late Asian hours on Monday, retracting nearly $1,500 from a high of $80,594 earlier in the day, marking its peak since January 31. This decline was triggered by reports from Iran’s Fars news agency claiming that two missiles struck a U.S. patrol boat near Jask Island after it allegedly ignored warnings to leave Iranian waters. Subsequently, Brent crude prices surged over 5%, rising above $113 per barrel before retracting the gain.
The U.S. quickly refuted these claims, stating no American vessel had been hit. This denial led oil and equity futures to scale back their initial reactions, yet Bitcoin maintained its downward trajectory as traders assessed the fragile ceasefire that has persisted since early April.
While other major cryptocurrencies also decreased from their intraday peaks, they remained positive overall for the day. Ether was valued at $2,341, up 1.2% over the past 24 hours after reaching $2,368 earlier. Solana’s price stood at $84.08, a marginal increase of 0.2% from its Monday start of $85.14. XRP dropped to $1.40 and BNB fell to $623. Dogecoin fared better, rising by 2.3% to $0.1102, with a weekly gain still at 12.1%.
The situation escalated following an announcement from former President Donald Trump on Truth Social that the U.S. would commence escort operations for ships in the Persian Gulf through the Strait of Hormuz beginning Monday as part of Project Freedom, which includes guided-missile destroyers, aircraft, and drones.
In response, Iran declared a redefined control zone in Hormuz extending to Fujairah, indicating its intention to regulate shipping traffic regardless of U.S. actions.
Earlier that day, Bitcoin had breached $80,000 for the first time since January, liquidating $301 million worth of shorts as the price surged. The Senate’s Clarity Act compromise on stablecoin yields, released Friday, also contributed to a risk-on mood at the week’s start.
The outcome of future U.S. denials or confirmations from involved parties is expected to influence market dynamics for the remainder of the U.S. trading session.