Bitcoin price has fallen below $78,000 as new U.S. military strikes against Iranian targets are increasing pressure across global markets. At press time, Bitcoin was trading at $76,762 after also dropping below the $77,000 level.
Ethereum has also fallen below $2,400, with about $115 million in long positions liquidated within 60 minutes, according to Coinglass.
Bitcoin Price Drops as US-Iran Conflict Escalates
Bitcoin price is facing renewed selling pressure as the United States carries out strikes against targets in Iran. According to the U.S. Central Command, operations began at 12 p.m. ET on Tuesday.
“U.S. forces began striking Islamic Revolutionary Guard Corps targets in Iran,” CENTCOM said. The command linked the action to recent attempted attacks around the Strait of Hormuz.
Backing the reports, Iranian state media has reported explosions on Qeshm Island, which sits along the northern side of the strait. Concurrently, there have been reports of explosions that have also emerged from Bandar Abbas and Chabahar.
Bitcoin price has moved below $78,000 during the escalation and is now trading around $76,762. Ethereum is also falling below $2,400 as selling spreads across the crypto market.
Source: X
Due to the decline, leveraged crypto positions are being hit as traders react to the latest military developments. About $115 million in long positions were liquidated within one hour.
However, the decline is not being limited to cryptocurrency markets, with the S&P 500 falling to its lowest level since August 4, while U.S. Treasury yields are rising.
Oil Prices Surge as Strait of Hormuz Risks Grow
U.S. oil prices are moving toward $90 per barrel following reports of the latest strikes. Brent crude is also nearing $93 as traders monitor shipping conditions around the strait.
Oil prices had already risen after earlier exchanges between U.S. and Iranian forces. Moreover, there were reports that two tankers were hit while leaving the Strait of Hormuz, adding further supply concerns.
Iranian officials are continuing to warn that Gulf oil exports could face disruption if military and economic pressure increases. In addition, Tehran has also warned that it could respond to additional U.S. action.
Iranian President Masoud Pezeshkian has said Tehran would reciprocate if Washington returned to commitments under an earlier memorandum. However, tensions are continuing after the latest U.S. strikes.
Trump Warns Iran Against Retaliation
President Donald Trump has described the latest U.S. strikes as “large and powerful.” He has also warned Iran against launching another military response.
Trump said Iran would face a “much harder and higher level” of attack if it retaliated. His statement came as Iranian officials were warning of their own response.
An Islamic Revolutionary Guard Corps spokesperson said the United States “will regret its new attacks,” according to Iran’s Fars news agency.