Bitcoin falls below $63,000 as markets give Hormuz traffic just 3% chance to normalize by August

A notable development has hit the crypto markets. Bitcoin slipped below $63,000 as renewed fighting between the United States and Iran pushed oil prices higher, drove bond yields up, and revived concern that an extended disruption in the Strait of Hormuz could keep inflation elevated. Data from shows the largest cryptocurrency traded near $62,940, down about 1. Other leading digital assets, including Ethereum, XRP, and Solana, all posted modest losses of less than 2% during the reporting period.

CoinGlass data showed that this price performance resulted in $252. 9 million in cryptocurrency positions being liquidated over the previous day, with traders holding leveraged long positions accounting for most of the losses. Such liquidations occur when exchanges automatically close undercollateralized trades, often accelerating a decline as prices pass through crowded levels.

Market Dynamics

Bitcoin held up better than many Asian markets, but any idea that investors would treat it as a refuge quickly faded. It moved with the rest of the risk trade, swinging on the same rate fears that dragged technology stocks and other speculative assets lower. Related Reading Bitcoin’s $60K price floor is back in play as Hormuz oil shock returns BTC fell below $63,000 after new U.

strikes as oil, the dollar and yields rose and equity futures retreated. Jul 13, 2026 Liam 'Akiba' Wright Strait of Hormuz chokepoint triggers macro contagion The crypto market turbulence is merely a symptom of a broader macroeconomic shockwave emanating from the Middle East. Global risk sentiment fractured following a weekend of American military strikes against Iranian installations.

The conflict currently centers almost entirely on the Strait of Hormuz, a crucial maritime artery that carries roughly a fifth of all global seaborne crude oil. The waterway's operational status remains heavily contested, creating a fog of uncertainty that energy markets traditionally despise. On X (formerly Twitter), the US Central Command confirmed that it deployed fighter aircraft, naval vessels, and autonomous sea drones to neutralize coastal radar networks, air defense systems, and missile launch capabilities.

Market Impact

The American military leadership also insisted that the corridor remains open for lawful commercial navigation and characterized the recent engagements as a necessary measure to protect civilian mariners from unprovoked hostilities. It added: “The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it.

forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations. ” However, Iranian authorities vehemently disputed that narrative, claiming the strait is entirely closed to international shipping. The diplomatic rhetoric has sharpened dramatically, with Iranian Parliament Speaker MB Ghalibaf stating that the “era of one-sided deals is over” and warning that the passage will only operate under strict Iranian administrative arrangements, firmly rebuffing any American transit ultimatums.

A prolonged closure would leave exporters with limited pipeline capacity to bypass the strait, tightening oil supply and raising freight and insurance costs. On Polymarket, traders are pricing in only a 3% chance that traffic will meet the contract's recovery threshold by July 31. The market resolves “Yes” if IMF PortWatch reports a seven-day moving average of at least 60 vessel calls on any date through July 31; otherwise, it resolves “No.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.