Geopolitical tensions just sent crypto today into a tailspin. Bitcoin, Ethereum, and XRP all took significant hits over the weekend after Iran escalated its response to Trump's ultimatum, threatening to completely shut down the Strait of Hormuz and target regional infrastructure. With less than 48 hours on the clock, markets are bracing for potential military escalation.

The numbers tell the story. Bitcoin dropped to around $71K, Ethereum fell to $2.2K, and XRP slipped to $1.33. Solana and Dogecoin followed suit with their own declines. The broader crypto market shed roughly $55 billion as risk-off sentiment took over, with the Fear and Greed Index plummeting into deep fear territory at 27. RSI readings across the market are approaching oversold levels we haven't seen since earlier in this conflict cycle.

What's interesting is how crypto today is behaving exactly like traditional risk assets. Institutional players aren't treating digital assets as a hedge anymore—they're dumping them alongside equities and commodities, rotating hard into cash and bonds. The Strait of Hormuz situation is particularly sensitive since roughly 20% of global oil passes through there daily. If Iran actually follows through on closing it, we're looking at a genuine supply shock that could ripple across all markets.

The real question now is what happens in the next day and a half. If Trump extends or softens his deadline, we'd likely see a relief rally across crypto today and risk assets broadly. But if things escalate militarily, Bitcoin could easily test the $65K level, with the broader market potentially pulling back to around $2.29 trillion—that critical 78.6% Fibonacci support level analysts have been watching.

What's making this even messier is that macro data is piling up this week. PMI data, oil inventory reports, jobless claims, and consumer sentiment figures could add more volatility on top of whatever happens with the Iran situation. For now, the market is in wait-and-see mode, but the positioning is definitely defensive. Anyone holding crypto today should be prepared for continued chop until we get more clarity on the geopolitical front.