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Washington, United States – The cryptocurrency market saw sharp volatility on Tuesday, May 12, 2026, after a social media post by U.S. President Donald Trump coincided with escalating tensions over Iran and rising energy prices. Bitcoin, which had traded above $82,000 earlier in the week, fell toward the $76,000 support zone after Trump publicly rejected a 14-point Iranian peace proposal delivered via Pakistani mediators, stating, “I don’t like it.” Within minutes of the message, Bitcoin dropped nearly $1,200, triggering a cascade of automated sell orders and margin calls. More than $370 million in long and short positions were liquidated across major exchanges in a 12-hour window, including about $81 million in long positions in the first hour alone, as prices swung by almost $4,000 in both directions. New York, United States – The turbulence left total crypto market capitalization at about $2.65 trillion, roughly 0.68% lower than the previous week, and underscored Bitcoin’s growing sensitivity to U.S. foreign policy and the conflict involving Iran. Traders treated Bitcoin as a risk-on asset and reacted to renewed uncertainty over a potential naval blockade of the Strait of Hormuz, erasing Monday’s brief “dead cat bounce” that had pushed the price back toward $82,400. Broader macroeconomic pressures, including a hotter-than-expected U.S. CPI report and oil prices above $100 per barrel, added to the sell-off by reinforcing expectations of higher-for-longer interest rates. Bitcoin’s market dominance rose to 58.60% as investors moved out of smaller altcoins, while institutional interest, reflected in more than $2.1 billion of recent inflows into spot Bitcoin exchange-traded funds, continued to underpin demand even as the market tested the $76,000 floor as a key support level.

By Sarah Whitman | JQJO News