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Bitcoin Falls Below $79,000 as Trump’s Threats Toward Iran Push Oil Above $105
Bitcoin dropped below the $79,000 level as global investor sentiment sharply deteriorated following the failure of the US-China summit and renewed geopolitical tensions in the Middle East.
Key Takeaways:
- On May 15, Bitcoin briefly fell to $78,611 after the stalled US-China summit unsettled investors.
- The sudden decline triggered widespread liquidations across the market, wiping out $382 million in long positions.
- Analysts expect Bitcoin volatility to persist amid the ongoing technological cold war between the US and China over AI chips.
Escalation of the US-China Technological Cold War
Bitcoin fell below $79,000 for the second time in two days as investor sentiment shifted from optimism to caution after the highly anticipated US-China summit failed to deliver the breakthroughs markets had hoped for.
The decline came just 24 hours after the cryptocurrency briefly surged to $82,000 following the US Senate Banking Committee’s 15-9 vote advancing the CLARITY Act.
According to Bitstamp data, the leading cryptocurrency fell to an intraday low of $78,611 around 10 a.m. Eastern Time on May 15 before quickly reclaiming the $79,000 level. By 1:40 p.m. ET, Bitcoin was trading near $79,400, reducing its daily losses to less than 3%.
After testing the $82,000 level at least three times over the previous five days, Bitcoin appeared set to close an extremely volatile trading week with modest losses, pushing its market capitalization below $1.6 trillion.
US-China Summit Ends Without a Breakthrough
The two-day summit, widely viewed as the most important high-stakes diplomatic meeting between Washington and Beijing in years, concluded without any meaningful breakthrough in trade relations.
Instead, the talks exposed deep systemic rivalry between the world’s two largest economies, while the issue of Taiwan’s sovereignty cast a long shadow over the negotiations.
According to geopolitical analysts, the inability to resolve disputes surrounding US export restrictions on advanced semiconductors and AI equipment effectively guarantees a prolonged escalation of the technological trade war.
Trump’s Remarks Trigger Oil Price Surge
Although the US and China reportedly found common ground regarding Iran’s nuclear ambitions and the recent closure of the Strait of Hormuz, that fragile consensus was quickly overshadowed by new geopolitical tensions.
Speaking to reporters aboard Air Force One, US President Donald Trump suggested that Washington might need to carry out a “cleanup” operation in Iran, hinting at a possible military campaign.
The hawkish rhetoric shocked global energy markets and triggered a sharp rise in oil prices. US benchmark West Texas Intermediate (WTI) briefly surged above $105 per barrel, while Brent crude jumped 3% to close at $109 per barrel.
Volatility Hits Both Crypto Markets and Wall Street
On Wall Street, the S&P 500 — which had reached the historic 7,500-point level on Thursday — retreated to 7,450. The Nasdaq Composite and Dow Jones Industrial Average also fell by less than 1% during Friday trading.
Meanwhile, Bitcoin’s sharp decline triggered liquidations totaling $86 million in long positions compared to just $11.5 million in short positions.
Across the broader crypto market, nearly $433 million in leveraged positions were liquidated, with $382 million attributed to longs.
See also: "Spot XRP ETF Balances Are Changing: Here’s the Latest Situation!"
