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Bitcoin pulls back from the $79,000 peak amid escalating economic war in the Middle East
On Thursday, Bitcoin’s upward momentum slowed: the asset’s price pulled back from a peak of $79,500 and stabilized around $78,000. This 1.2% drop marked the first daily decline of the cryptocurrency in several days, leading to a reduction in total market capitalization by $10 billion.
Key takeaways:
- On April 23, Bitcoin fell to $77,201, failing to hold the $79,500 peak.
- Market volatility led to $218 million in liquidations, harming traders who opened leveraged long Bitcoin positions.
- Analysts fear that Iran may target Persian Gulf countries if the U.S. naval blockade continues to suppress port revenues.
Geopolitical tension in the Strait of Hormuz
On April 23, 2026, it seemed that Bitcoin could capitalize on the momentum that pushed it above $79,000 on Wednesday afternoon. However, as the day progressed, that bullish energy dissipated. Daily charts show a steady downward trajectory after the leading cryptocurrency reached a peak of $79,500, falling to an intraday low of $77,201 by 6:00 AM Eastern Time.
The cryptocurrency showed a brief recovery, rising above $78,500 before entering a consolidation phase around $78,000 at the time of writing (1:00 PM Eastern Time). This price movement marks Bitcoin’s first decline in the last 24 hours — 1.2% — since April 20, when it reached a low of approximately $73,800. As a result of Thursday’s drop, Bitcoin’s market capitalization decreased by nearly $10 billion, falling from a monthly high of $1.58 trillion to approximately $1.57 trillion.
Market sentiment remains dependent on the escalation of the “economic war” in the Middle East. After the temporary suspension of direct military actions, the conflict has shifted into a struggle for control over the Strait of Hormuz, where commercial vessels have been stuck for over a month.
Key events contributing to concern include the seizure of an Iranian vessel by the U.S. Navy just hours after forces of the Islamic Revolutionary Guard Corps took control of two ships. Some observers fear that if the U.S. blockade of Iranian ports continues to restrain the country’s revenues, Tehran may escalate by striking neighboring Persian Gulf countries.
Nevertheless, despite tensions at sea, global stock markets largely remained calm. South Korea’s Kospi and France’s CAC 40 posted modest gains, while most other major indices remained unchanged.
Daily fluctuations in Bitcoin’s price of $1,000 stirred activity in the derivatives market, although the decline was less sharp than in the previous session. The drop led to the liquidation of $35 million in long positions and about $23 million in short positions — a significant decrease compared to the $207 million wiped out on Wednesday.
Across the broader crypto economy, total liquidations reached $218 million, with the main impact of volatility hitting overleveraged long traders, who accounted for $147 million of total losses.
See also: "A $10 billion options “earthquake” in Bitcoin and Ethereum will occur tomorrow!"
