Bitcoin Plunges Below $83,000 on Trump's Rejection of Iran Proposal

Bitcoin's price slipped below $83,000 on Monday after US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz and pause hostilities. The decision sent shockwaves through markets, causing Brent crude to climb above $100 a barrel and the dollar to strengthen.

The combination of higher oil prices, a stronger dollar, and rising yields is not conducive to non-yielding assets like Bitcoin or gold. According to CoinGlass, liquidations reached $478 million over 24 hours, with $386.5 million coming from long positions.

Open interest in Bitcoin futures has fallen more than 11% over the past week, a sign that traders are pulling back from leverage. The total crypto market cap slipped below $3 trillion. Ethereum and XRP moved lower alongside Bitcoin, while Dogecoin managed a small gain against the trend.