Bitcoin's price tumbled sharply on March 22, 2026, dropping to around $68,000 for the first time since March 9. The sudden decline occurred after former US President Donald Trump issued a stark 48-hour ultimatum to Iran, threatening to "obliterate" its power plants if the country failed to reopen the Strait of Hormuz.
The price drop was rapid and severe. After trading above $70,000 on Saturday and even challenging $71,000, Bitcoin collapsed by several thousand dollars. On some exchanges, it dipped below $68,000, while on major platforms like Bitstamp and Binance, it fell to as low as $68,200. This represented a three-week low for the leading cryptocurrency.
The geopolitical shock triggered a massive liquidation event in the crypto derivatives market. According to The Kobeissi Letter, over $240 million worth of leveraged crypto positions were liquidated in just 60 minutes following Trump's threat. Data shows Bitcoin liquidations surged 86% in 24 hours, with long positions accounting for over 90% of the total, indicating the market was positioned for a continued recovery before the news hit.
The broader crypto market followed Bitcoin's downward trajectory. The total market capitalization shed approximately $45 billion in 30 minutes, falling 1.95% to $2.38 trillion. Ethereum slipped beneath $2,100, Solana dropped to $88.25, XRP fell below $1.40, and Dogecoin declined to $0.092. The CoinMarketCap Fear & Greed Index plunged to 28, deep into "fear" territory.
Analysts noted that Trump's aggressive stance marked a dramatic reversal from his position just 36 hours prior. On Friday afternoon, he stated he didn't want a ceasefire with Iran, but by evening, reports suggested the US was "considering winding down" the war. By Saturday, Axios reported Trump was planning "peace talks," only for him to issue the military threat hours later.
The event highlighted crypto's high correlation with traditional risk assets. Data showed an 88% correlation with the S&P 500 and a 92% correlation with gold, reinforcing that digital assets are being traded as macro risk instruments. The average crypto RSI fell to 40.1, approaching oversold territory. Analysts are now watching the $2.34 trillion total market cap level as immediate support, with a breach potentially exposing the $2.29 trillion Fibonacci retracement level.
