Bitcoin and Ethereum slide after Iran says Strait of Hormuz is shut

Bitcoin and Ethereum slid on Saturday after a peace deal with Iran touted by US President Donald Trump looked shaky.

The two biggest cryptocurrencies had rallied, hitting two-month highs but have slid again.

Bitcoin was down nearly 2% over a 24-hour period, touching $76,252, according to CoinGecko. Ethereum dropped by 3% and was priced at nearly $2,365.

Still, over the past week, the leading coins are up around 5%.

Their Saturday dip came after news dropped that Iran had said the strategic waterway, the Strait of Hormuz, was shut.

Markets had rallied after President Trump this week said the war would end “soon.” Iran said the Strait was open during a ceasefire.

No blackmail 

President Trump on Saturday reiterated that talks with Iran had been going well.

But he did add that if Iran closed the Strait it would be blackmail. “They can’t blackmail us,” he told reporters Saturday morning.

Tehran said it was responding to the US ​blockade of Iranian ports, and Supreme Leader ​Mojtaba Khamenei said in a message read on state TV that Iran’s navy was ready to inflict “new bitter defeats” on its enemies.

Crypto markets the past two weeks have surged since President Trump announced a two-week ceasefire with Iran. That ceasefire could now be coming to an end.

The prices of Bitcoin, Ethereum and other major coins have typically faced downward pressure on news of war and rallied in hopes of a ceasefire.

ETF action 

US investors fast piled into Bitcoin and Ethereum exchange-traded funds this week.

Bitcoin funds received nearly $1 billion in fresh cash while their Ethereum counterparts took in close to $276 million, according to Farside Investors data.

The rise in Bitcoin flows comes after Morgan Stanley last week debuted a new fund, the Morgan Stanley Bitcoin Trust, which already manages $120 million in assets.

Crypto market movers

• Bitcoin was trading for $76,252 per coin on Saturday, down 2% over the past day. 
• Ethereum’s price dropped to $2,365, a 3% 24-hour dip.

What we’re reading

• SEC tackles crypto in first episode of new podcast — DL News
• Drift degen sues Circle, alleging stablecoin giant ‘did nothing’ during $295m hack — DL News
• Why Bitcoin’s Biggest Taboo Is Now a Serious Proposal (podcast) — DL News 
• Lighter vs. Hyperliquid: who wins? — Milk Road
• Wall Street Rushes to Price Out War Damage as Stocks Hit Records — Bloomberg

Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.