Bitcoin’s price surge to over $80,500 was abruptly halted as geopolitical tensions between Iran and the United States escalated, with reports of attacks on a US warship near the Strait of Hormuz. The primary cryptocurrency dropped sharply toward $78,000, triggering significant market volatility and liquidations exceeding $450 million in 24 hours, with over 110,000 traders affected.
The price of Bitcoin fell sharply from a peak above $80,500 after reports emerged of heightened military tensions involving Iran and the United States. This decline followed news that two missiles allegedly struck a US Navy vessel near Jask in the Strait of Hormuz after it ignored warnings from Iran’s Revolutionary Guard.
According to Al Jazeera, which cited information from Iran’s state media IRGC, the reported attacks occurred shortly after US President Donald Trump announced a new naval mission in the region. Trump described the mission as “a humanitarian gesture on behalf of the United States, Middle Eastern countries, but, in particular, the country of Iran.”
The cryptocurrency market reacted with immediate volatility, with Bitcoin leading a decline that saw its price move south. This price action reversed a rally that had pushed the asset to its highest level in over three months earlier in the day.
Market data indicates the sell-off resulted in substantial liquidations across leveraged positions. According to information from CoinGlass, nearly 110,000 traders were liquidated in the past day amid the turmoil.
