Bitcoin fell over 2% toward $62,500 after President Trump reinstated the Iranian blockade in the Strait of Hormuz and announced new cargo fees for ships crossing the waterway. According to CoinGlass, the downturn erased nearly $20 billion from the crypto market and triggered almost $40 million in liquidations across major cryptocurrencies. Trump stated that the Strait of Hormuz would remain open "with or without Iran" and declared that the United States would now be known as "THE GUARDIAN OF THE HORMUZ STRAIT." The President also announced that Washington would collect a 20% reimbursement on all cargo shipped through the passage with U.S. protection, saying the payment would cover the costs of maintaining safety and security in what he described as a volatile region.
The Strait of Hormuz handles approximately 20 million barrels of oil daily, roughly a fifth of global consumption, making it a critical energy infrastructure point. As reported by CoinDesk, shipping activity has already declined significantly, with just six vessels crossing the strait in one recent 12-hour window, down from 18 to 22 a day earlier this month. The EIA data shows this represents close to a quarter of all seaborne oil, highlighting the strategic importance of maintaining free passage through the waterway. Iran's Navy has announced that the Strait of Hormuz will remain closed until further notice, while Iranian forces have reportedly struck multiple vessels operating in the waterway in recent days as the country seeks to tighten its control over the strategic oil corridor.
On Truth Social, Trump said the US would guard the strait and be repaid for the cost, proposing a 20% fee on all cargo shipped through it. According to CoinDesk, Trump wrote that "The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran... The U.S.A. will be, from this point forward, known as "THE GUARDIAN OF THE HORMUZ STRAIT"... reimbursed, at the rate of 20% on all cargo shipped." The fee would break with how the US has long patrolled the strait for free and inverts a June truce that had barred Iran from charging ships, potentially feeding inflation concerns. Trump stated that implementation would begin immediately, following his earlier proposal for the United States to take control of the Strait of Hormuz and introduce transit fees, an idea that came after Iran discussed imposing its own tolls on vessels crossing the chokepoint.
Despite optimism around the CLARITY Act being tabled in the Senate for discussion this week, Bitcoin and crypto-linked equities declined Monday as the broader market selloff continued. According to TD Cowen, the firm expects to see an updated version of the Clarity Act bill that incorporates language from the Senate Banking and Agriculture committees as the Senate returns this week. It expects that the legislation could hit the floor as soon as the week of July 20. However, the death of Senator Lindsey Graham removes an expected Republican "yes" vote, making it more difficult to secure the 60 votes needed to overcome procedural hurdles in the Senate. President Trump urged senators to pass the CLARITY Act "in honor of Senator Lindsey Graham, a big supporter," calling for lawmakers to approve the bill as China and "many other countries" want "complete and total control" of cryptocurrency and artificial intelligence. Shares of Circle and Coinbase initially moved higher following Trump's comments, but those gains faded alongside the broader pullback.
Bitcoin is changing hands near $62,500, down nearly 2.5% over the past 24 hours, extending its retreat from levels above $64,000 reached earlier this week. The daily chart shows weakening momentum after Bitcoin failed to hold above the 78.6% Fibonacci retracement near $63,200 and slipped back below the 50-day simple moving average around $64,650. Price continues to trade inside a descending channel that has been in place since May, while the 100-day and 200-day moving averages remain much higher near $70,700 and $73,800, respectively. Retail sentiment around Bitcoin dropped to 'bearish' from 'neutral' territory over the past day, with one retail trader on Stocktwits forecasting that Bitcoin's price could rally as high as $75,000 if the CLARITY Act passes. Despite the decline, the Chaikin Money Flow indicator remains slightly positive at around 0.06, suggesting capital inflows have not completely reversed.
