Trump's remarks trigger a sell-off of risky assets, with Bitcoin approaching $62,000

Bitcoin fell to US$62,000, Trump's remarks triggered a sell-off of risky assets

As investors digested news of renewed tensions between the United States and Iran, Bitcoin weakened further after Wall Street opened on Monday, and the price of the cryptocurrency slipped into the US$62,000 region. At the same time, U.S. stocks were also under pressure from risk aversion, while energy markets remained firm after the escalation in the Strait of Hormuz.

On the political front, U.S. President Trump said the United States would "take over" the Strait of Hormuz after Iran closed the Strait over the weekend-an escalation that kept oil prices high and added uncertainty to the broader market. In this context, some traders described aggressive short Bitcoin positions and pointed to key intraday levels that could determine whether the sell-off will continue or trigger a rebound.

Overview of key points

Bitcoin slipped towards about US$62,000. The U.S. stock market opened lower, and market sentiment was suppressed by the escalating situation in the United States and Iran. Trump's remarks about taking over the Strait of Hormuz have coincided with stronger oil prices, with U.S. West Texas Intermediate crude (WTI) hovering around $75 a barrel. Traders pointed out that there was "massive" short activity before the opening bell in New York, with prices held around the volume-weighted average price (mVWAP), and bulls may need to hold on to that level. Despite the weakness, some market participants still believe there is a possibility of a return to the $70,000-$75,000 range, citing signs of exhaustion and exchange data.

Bitcoin tests key levels, bears increase bets

Market charts show that as Monday's trading session unfolded, the exchange rate of Bitcoin against the U.S. dollar gradually approached the US$62,000 region. One trader highlighted what they called a "massive" short trading had occurred during the period leading up to the opening in New York and believed prices were being pushed directly towards the volume-weighted average price (mVWAP)-a level that bulls usually focus on because it represents the volume-weighted average trading price across exchanges. JDK Analysis said in a post that the market is "currently at mVWAP levels," adding that if that level falls below,$60,000 could reappear. The JDK also noted that the sell-off looked "very weak" but that if meaningful spot demand emerged during the New York session and mVWAP was held, a rebound could still occur, which could trap some short sellers.

Other market participants echoed this bearish capital flow. For example, Exitpump has previously pointed to "crazy numbers of aggressive short positions" while noting that open interest appears to be rising-an observation often associated with the expansion of derivatives positions when prices fall.

Situation in the Strait of Hormuz escalates, oil prices stabilize and rise

Bitcoin's pullback also reflects the broader macro environment at the opening. U.S. stocks fell broadly, with the Nasdaq Composite Index down about 1% at the time of writing, reinforcing cautious risk sentiment. Energy prices continue to be supported by geopolitical risks associated with the Strait of Hormuz. According to reports, Trump said the United States would be responsible for the security of the strait, calling it the "guardian" and implying that it should receive "compensation" for this. The Strait of Hormuz is a key international waterway for oil transportation, and any interference or strengthened control may quickly affect market expectations for supply and transportation risks.

In the cryptocurrency market, this is important because continued oil-driven inflation and risk premium changes can affect liquidity conditions and investor demand for risky beta assets such as Bitcoin-especially in times when derivatives positions are already crowded. Data shows that WTI crude oil prices hover around US$75 per barrel. Traders continue to incorporate uncertainty into pricing, and oil prices continue to rise.

Traders still aim for rebound to US$70,000

Despite selling pressure, some traders still believe the downward trend may be close to exhaustion. Trader Roman, who has previously expressed bullish expectations, said multiple indicators point to gains and the timing depends on how the market forms a structure during the upside. Roman singled out signals for higher and lower time frames, while pointing to exchange-related observations that showed more spot purchases than sales. He mentioned potential upside in the $70,000 to $75,000 area, suggesting that bears could face squeeze if buyers regain control and derivative demand turns. Importantly to readers, these views do not deny the current weakness: they view current trading as potentially creating the conditions for a rebound, rather than a direct reversal. In markets where prices are suppressed near levels such as mVWAP, bulls often seek confirmation through continued spot buying and subsequent movements after the opening.

What to focus on next: confirmation signals, spot demand and derivatives positions

For traders trying to determine whether the current decline is turning into a sustained downside or a tactical rebound, the short-term focus may remain on whether Bitcoin can hold on to key intraday benchmarks such as mVWAP and whether spot demand increases during U.S. trading hours. At the same time, monitoring the pace of open interest and short activity helps determine whether the market is establishing new bear positions or whether bears are beginning to be forced out of the market. Given that geopolitical headlines can still affect both oil prices and risk sentiment, order flow and subsequent movements in the next trading session (rather than any single forecast) may determine whether Bitcoin's $62,000 test evolves into a deeper decline, moving towards lower support, or re-attempting to recover the $70,000 area.