Hormuz Hustle: Bitcoin Slides Below $63K as Tanker Attacks and Trump's "Japan" Gaffe Rattle Markets 🛢️

Bitcoin fell below $63,000 on Tuesday after two oil tanker attacks in the Strait of Hormuz and renewed U.S.-Iran hostilities triggered a broad risk-off move across crypto and equity markets. The UK Military Center reported on X that two tankers sustained minor structural damage in separate incidents in the strait, marking further attacks on vessels within 24 hours. Qatar has accused Iran of being responsible for the earlier strike, and the U.S. said it launched "powerful strikes" against Iran following attacks on three ships in the Strait of Hormuz, including Qatari and Saudi tankers. Iran said it targeted "85 US military installations" in retaliation for strikes on its Hormozgan and Mahshahr provinces.

President Donald Trump told reporters that the U.S.-Iran ceasefire is now over. "I don't want to have anything to do with them anymore; they're scum," he said, while also referring to Iran as the "Islamic Republic of Japan" during remarks on an attack on a U.S. aircraft carrier involving 11 missiles. Trump added during the NATO Summit that the U.S. will "probably hit Iran again tonight." The exchange of strikes has pushed the two nations' cease-fire to the brink of collapse.

Crypto markets reacted sharply. Bitcoin ($BTC) slipped to $62,657 in Asian trading hours and was last cited at $62,523.93, down nearly 1% since midnight UTC, according to CoinDesk data. Ether ($ETH), XRP ($XRP), and Solana ($SOL) fell between 1% and 2.3%. More than 137,023 crypto traders were liquidated, totaling over $385 million. Around $500 billion was wiped out of U.S. stock markets in just a few hours, with the S&P 500 down 1%, the Nasdaq 100 down 1.5%, and the Dow Jones down 1.3%.

Oil spiked on the headlines. WTI crude futures jumped more than 2% to $72.27, with crude prices testing the $75 resistance and rising roughly 5% intraday on broader reports. The Dollar Index held steady above 101.00, maintaining Tuesday's gains. The Iran conflict, which earlier this year pushed oil above $100 a barrel and stoked global inflation fears, has renewed expectations of higher interest rates that tend to weigh on risk assets.

Bitwise Chief Investment Officer Matt Hougan said during a live broadcast that the initial market reaction stemmed from panic selling and a desire to convert to cash, adding that geopolitical shocks create short-term volatility but do not alter Bitcoin's long-term macroeconomic fundamentals. Analysts cited $62,000 as a key support level, noting that closes below it could deepen the decline while expecting stabilization over the medium term.