Bitcoin, Ethereum slide as U.S. strikes Iran

Bitcoin ↘ 1.44% and Ethereum ↘ 0.81% slid on Tuesday after President Donald Trump announced new U.S. strikes on Iranian targets near the Strait of Hormuz and warned that a much larger attack was "waiting in the wings." The geopolitical shock rippled through global markets, sending equities lower and oil surging as investors rushed out of risk assets.

U.S. Strikes Reignite Conflict

U.S. Central Command confirmed on Tuesday that American forces began striking Islamic Revolutionary Guard Corps targets in Iran at noon ET, citing recent IRGC attempts to mine the Strait of Hormuz and missile attacks on a U.S. military base in Jordan. The strikes follow a separate round of attacks on Aug. 30 targeting Iranian forces that had reportedly placed sea mines in the waterway.news.bitcoin+1

Trump posted on Truth Social that the strikes were "large and powerful" and warned that if Iran retaliates, it would be "hit again at a much harder and higher level." He added that an even larger operation was ready, saying "there will be very little left of the Islamic Republic of Iran". Reuters reported that Trump called the latest strikes "justified" while warning Tehran against any response.reuters+1

Markets Buckle Across the Board

The escalation sent Brent crude surging past $96 per barrel, while the Dow Jones fell over 400 points and the S&P 500 and Nasdaq both traded lower. Gold and silver also declined despite their usual safe-haven appeal, with gold dropping more than 2%.news.bitcoin

Bitcoin pulled back after tagging a high above $82,000, its highest level since May, and slid toward the high-$76,000 range. Ethereum was consolidating inside an ascending triangle below resistance near $2,485, with the 20-day exponential moving average around $2,308 serving as near-term support.benzinga+1

Liquidation Cascade Hits Leveraged Traders

The volatility triggered roughly $82 million in crypto futures liquidations over the prior 24 hours, according to tracking data cited by CryptoRank. Bitcoin accounted for $43.94 million, with 74.33% coming from short positions, while Ethereum saw $31.64 million liquidated with an 82.39% short ratio. Solana ↘ 2.55% added $6.83 million in liquidations.cryptorank+1

The heavy concentration of short liquidations suggests a squeeze that briefly amplified upward price momentum before the geopolitical selling pressure took hold. As Benzinga noted, rising bond yields added another headwind: analyst James Lavish told CoinDesk that a key global bond yield gauge hitting its highest level since 2008 represented "the death of fiat in a slow-motion train crash".benzinga