Bitcoin shed more than 10% in hours after Trump ordered a naval blockade of the Strait of Hormuz, rattling global risk markets.

Bitcoin fell sharply to $71,000 on Sunday after President Donald Trump signed an order directing the U.S. Navy to establish a blockade of the Strait of Hormuz, the critical waterway through which roughly 20% of the world’s seaborne oil supply travels. The announcement triggered an immediate selloff across risk assets globally.

Bitcoin had been trading near $75,000 before the news. Following the Hormuz announcement, however, the asset dropped to a low of about $70,500 as traders assessed the macro consequences of a potential prolonged energy shock.

The Strait of Hormuz sits between Iran and Oman and is the single most important oil transit chokepoint in the world. A sustained blockade would disrupt exports from Saudi Arabia, the UAE, Kuwait, and Iraq, threatening to push oil prices well above $100 per barrel and reignite global inflation. That scenario would put the Federal Reserve in a difficult position, limiting its ability to cut interest rates.

This story is an excerpt from the Unchained Daily newsletter.

Crypto markets, despite frequent comparisons to digital gold, have historically sold off alongside equities during sudden geopolitical shocks. Bitcoin’s correlation to the S&P 500 remained elevated through early 2026, meaning macro fear tends to override any safe-haven narrative in the short term.

Whether the blockade escalates into a sustained confrontation or serves as a negotiating tactic will determine how long the pressure on risk assets lasts.