Strait of Hormuz Tensions Weigh on Bitcoin Amid Geopolitical

Bitcoin (BTC) faced renewed selling pressure as markets reacted to escalating US-Iran tensions over the closure of the Strait of Hormuz, a critical oil shipping route. The cryptocurrency edged closer to $62,000, with traders noting aggressive short positioning ahead of the New York open. US stocks, including the Nasdaq Composite Index, opened lower, down 1%, while oil prices held firm at $75 per barrel for WTI crude.

President Donald Trump intensified rhetoric, stating the US would assume control of the strait and seek reimbursement for its role as a "guardian." This geopolitical friction introduced volatility into risk assets, with Bitcoin's price action reflecting broader market uncertainty.

■BTC/USD approached $62,000 amid "massive" short trading activity, according to TradingView data.

■Analysts highlighted volume-weighted average price (mVWAP) as a critical support level, warning of potential retests of $60,000.

■Open interest in Bitcoin derivatives rose, signaling increased speculative bets on further downside.

■Despite weakness, some traders retained bullish outlooks, citing relative strength index (RSI) divergence and volume exhaustion.

The interplay between geopolitical risk and on-chain data will likely define Bitcoin's trajectory in the near term, with institutional flows and macroeconomic signals holding the key to a potential rebound.