The US military struck more than 170 Iranian military facilities, including air defense systems and missile sites at locations like Bandar Abbas and Bushehr. Iran hit back with missile and drone attacks on over 85 US installations across Bahrain, Kuwait, and Jordan.
Bitcoin didn’t collapse. It wobbled, recovered, and is now trading near $63,000, up 1.2% even on days when US strikes hit 90 Iranian targets.
What happened, and what the markets did next
The current conflict traces back to March 2026, when US and Israeli forces began striking Iranian infrastructure. That initial round sent Bitcoin sliding to roughly $63,255 before the market found its footing and climbed back toward $68,000 to $69,000.
The July 2026 escalation, with the US expanding strikes near Tehran itself, produced a similar pattern. Bitcoin dipped toward $63,000, then rebounded. Ether held above $2,000 at key points during the fighting. The overall crypto market cap fluctuated between $2.1 trillion and $2.5 trillion during the most intense periods of the conflict.
The Fear and Greed Index registered 26 during July 2026, firmly in “fear” territory. The aggregate market cap dropped 1.7% in a single 24-hour span during one escalation cycle.
Bitcoin dominance stayed between 58% and 59% throughout the conflict. When investors get scared, they don’t necessarily leave crypto entirely — they consolidate into Bitcoin. It’s the crypto equivalent of rotating into Treasuries during a stock selloff.
What investors should actually watch now
The $63,000 level has emerged as a reference point worth monitoring. Bitcoin tested it during the March strikes and again during the July escalation.
Bitcoin dominance staying above 58% is also worth tracking. A drop below that threshold during an escalation would suggest that investors are leaving crypto entirely rather than rotating within it, a meaningfully more bearish signal than simple price declines.
The broader crypto market cap range of $2.1 trillion to $2.5 trillion has effectively become the conflict-period trading range. A sustained break below $2.1 trillion would indicate that geopolitical risk is overwhelming the market’s ability to absorb shocks.
The March 2026 playbook showed a recovery from $63,255 back to the $68,000 to $69,000 range.