Bitcoin slides as fresh US strikes on Iran rattle crypto markets

Bitcoin ↘ 0.37% fell below $63,000 on Tuesday as the United States launched a new round of military strikes against Iran, rattling risk markets and pushing the broader cryptocurrency sector lower.

US Strikes Trigger Risk-Off Move

US Central Command said its forces completed offensive strikes against Iran on July 7, hitting more than 80 targets with precision munitions in response to Iranian attacks on commercial vessels transiting the Strait of Hormuz. The strikes targeted air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats. The action came despite a promise by President Donald Trump to pause attacks during the seven-day funeral of Iran's Supreme Leader Ali Khamenei, according to Al Jazeera.centcom+2

The escalation weighed on crypto markets. Bitcoin traded near $62,650 on Tuesday, according to CoinDesk, though it remained up roughly 6% on the week. Bloomberg reported that the largest cryptocurrency fell more than 3% to below $63,000 as Trump's remarks raised fresh Iran war concerns. Ethereum ↘ 0.22%, XRP ↘ 0.22%, Dogecoin ↗ 0.45%, and Solana ↗ 0.29% also traded lower amid the broader risk-off sentiment.coindesk+1

Liquidations Pile Up

The sell-off triggered a wave of forced closures across leveraged crypto positions. Data from KuCoin showed $377 million in crypto futures liquidations over 24 hours on July 8, led by $128 million in Bitcoin and $93 million in Ethereum. Solana and XRP saw $13.8 million in combined liquidations. The figures followed an even larger wave earlier in the week, when nearly $498 million was liquidated in 24 hours on July 7, according to Cointelegraph data cited by PricePredictions.pricepredictions+1

Broader Context

The drawdown extends a volatile stretch for Bitcoin, which has fallen more than 50% from its all-time high near $126,000. The cryptocurrency had shown signs of recovery in early July after an 18% drop in June, but renewed geopolitical uncertainty has dampened that momentum. The total cryptocurrency market cap stood at roughly $2.18 trillion as of July 8, according to Binance data.bloomberg+3

The S&P 500 and other equity benchmarks also faced pressure as investors weighed the risks of a broader US-Iran conflict. For crypto traders, the key question is whether the $62,000-to-$64,000 support zone — tested repeatedly in recent weeks — can hold if hostilities escalate further.kucoin