Bitcoin and other major cryptocurrencies experienced a sharp but brief price drop following U.S. and Israeli military strikes against Iran. The leading cryptocurrency fell from $65,572 to $63,176 before recovering most losses, currently trading around $65,051. The geopolitical tension triggered nearly $500 million in crypto market liquidations, with Bitcoin positions accounting for the largest share.
The price of Bitcoin fell sharply overnight as the United States and Israel began joint military operations in Iran. Officials stated the strikes targeted the country’s nuclear and ballistic missile programs and key military leaders.
Bitcoin plunged from $65,572 to $63,176 in approximately one hour following news of the attacks. It has since largely recovered, trading at $65,051 and showing a daily loss of about 0.8%.
Major altcoins like Ethereum, XRP, and Solana also fell but similarly recouped most losses. Data from CoinGlass shows about $490 million in crypto positions were liquidated in the past 24 hours.
Bitcoin liquidations totaled $196 million, with Ethereum following at $132 million. At its overnight low, Bitcoin was approximately 50% below its all-time high above $126,000 set last October.
Crypto prices have historically been impacted by geopolitical turmoil, as seen when prices fell after Russia’s invasion of Ukraine in 2022. Iran launched retaliatory attacks against U.S. military assets following the overnight strikes.
News agencies have reported mass civilian casualties in Iran, including 85 deaths after a girls school was struck. Users on the prediction market Myriad now place a 51% chance that the Iranian regime will collapse before October, with those odds rising 20% in the past day.
