Bitcoin dropped to $79,074 in late Asian hours Monday, reversing nearly $1,500 from an $80,594 intraday high that had marked the highest print since January 31. The pullback came as Iran's Fars news agency claimed two missiles hit a U.S. patrol boat near Jask Island after the vessel allegedly ignored Iranian warnings to leave its territorial waters. Brent crude jumped more than 5% to trade above $113 a barrel before paring the gain.
The U.S. denied the report shortly after, and a senior defense official quoted by Axios described the claims as 'unfounded' and based on unverified intelligence. Despite the denial, bitcoin held its decline, with traders pricing in the fragility of the ceasefire that has held since early April. Other majors followed bitcoin lower from intraday highs but stayed positive on the day. Ether traded at $2,341, up 1.2% over 24 hours after touching $2,368 earlier. Solana sat at $84.08, up just 0.2% after starting Monday at $85.14. Dogecoin held its gains better than most, up 2.3% on the day to $0.1102 with the weekly print at 12.1%.
The escalation arrived hours after President Donald Trump announced on Truth Social that the U.S. would begin escorting ships stranded in the Persian Gulf through the Strait of Hormuz starting Monday, an operation dubbed Project Freedom involving guided-missile destroyers, aircraft, and drones. Iran responded by announcing it had 'redefined the control zone' in Hormuz, extending its claimed maritime borders to Fujairah. Bitcoin had broken $80,000 for the first time since January, with $301 million in shorts liquidated as the move unfolded earlier Monday. The Senate's Clarity Act compromise on stablecoin yield, released Friday, had been adding to the risk-on tone heading into the week.
