Bitcoin Slides to $71k as Trump Orders Hormuz Blockade

Published: 2026-04-13 11:26:37 |

Bitcoin fell more than 10% to around $71,000 after President Donald Trump ordered a US naval blockade of the Strait of Hormuz. The chokepoint carries roughly 20% of global seaborne oil supply. Ahead of the announcement, BTC traded near $75,000. After the news, it slid to a low around $70,500 as traders priced in a potential prolonged oil shock. A sustained blockade could disrupt exports from Saudi Arabia, the UAE, Kuwait and Iraq, pushing oil toward or above $100 and reviving inflation concerns. That scenario may also limit the Federal Reserve’s ability to cut interest rates. The article adds that during sudden geopolitical shocks, Bitcoin often trades with risk assets: BTC’s correlation with the S&P 500 stayed elevated through early 2026, weakening the short-term “digital gold” safe-haven narrative. Near-term direction hinges on whether the blockade escalates into a sustained confrontation or is used as a negotiation tactic, which would determine how long risk-asset pressure lasts.

Bearish

This news is likely bearish for Bitcoin in the short term because the Hormuz blockade raises tail risk of a prolonged energy shock, which typically hits liquidity and risk appetite. The knock-on effects to oil (potentially pushing prices toward or above $100) can revive inflation concerns and reduce the market’s expectations for Fed rate cuts, both of which tend to pressure BTC. The article also flags a key trading behavior: in geopolitical shock episodes, Bitcoin has been trading more like a risk asset rather than a safe haven (elevated correlation with the S&P 500). Even if BTC later stabilizes or rebounds, the main driver here is macro risk-off flow tied to energy and geopolitical escalation. Longer-term outcomes are more uncertain and depend on whether the blockade escalates into sustained confrontation or stays framed as a negotiation tactic. If escalation continues, additional risk-off waves could prolong downside pressure; if de-escalation follows, BTC could recover faster.