Bitcoin has lost the 78,000 and 77,000 levels in quick succession after the United States launched fresh military strikes on Iranian targets, triggering heavy selling across crypto and stock markets and pushing oil prices sharply higher.
According to U.S. Central Command, American forces began striking Islamic Revolutionary Guard Corps targets in Iran at 12 p.m. ET on Tuesday, citing recent attempted attacks against commercial vessels in the Strait of Hormuz and U.S. military personnel stationed in the region. Bitcoin fell through 78,000 as reports of the operation emerged, then extended its decline below 77,000. At the time of writing, the cryptocurrency traded around 76,762, down from an intraday high near 79,166.
The selling was not confined to Bitcoin. Ethereum moved below 2,400 during the decline, and according to CoinGlass data cited in the original report, roughly 115 million USD in leveraged long positions across the crypto market were liquidated within a single hour. Liquidations occur when an exchange closes a leveraged position after the trader’s collateral can no longer cover mounting losses, and a rapid price decline can force the closure of long positions, adding more sell orders to an already weak market.
A Month-Long Truce Breaks Down
Tuesday’s action ended roughly a month without direct military exchanges between the two countries, according to the Associated Press. Earlier U.S. strikes on Sunday targeted rocket launchers on Larak Island, after which Iran launched missiles toward American sites in Jordan. Jordanian forces intercepted the missiles, while the United Arab Emirates said it stopped an Iranian drone over its waters.
Iranian state media reported explosions across several locations on the country’s southern coast, including Qeshm Island, Bandar Abbas, and Chabahar, with reports cited by Axios also identifying Jask, Konarak, Minab, and Sirik among the areas struck. Qeshm Island and Bandar Abbas sit close to the Strait of Hormuz, the passage through which roughly one-fifth of global oil and liquefied natural gas supplies moved before the current conflict, according to Reuters data previously cited in market coverage.
Following the strikes, Iranian semi-official news agencies Fars and Tasnim reported that Tehran had started launching missiles and drones in response, and an IRGC spokesperson said the United States “will regret its new attacks.” President Donald Trump described the American operation as “large and powerful” and warned that another Iranian response would lead to a “much harder and higher level” of U.S. attack. Iranian President Masoud Pezeshkian had said earlier on Tuesday that Tehran was prepared to return to the ceasefire agreement brokered with Washington in June if the United States followed its terms.
Oil Above 90 Compounds the Pressure
Crude prices accelerated as military activity returned to areas around the strait. Reuters reported that Brent crude settled 4.6 percent higher at 94.65 USD per barrel, while U.S. West Texas Intermediate rose 5.2 percent to 90.22 USD. Oil traders were also monitoring reports that two tankers had been hit while leaving the strait, and Iranian officials have warned that Gulf oil exports could face additional disruption if pressure on Tehran continues.
The market reaction extended well beyond digital assets. U.S. equities declined as investors assessed the effect of higher oil prices, Treasury yields rose as government bonds sold off, and the S&P 500 fell to its lowest level since Aug. 4, according to market data cited in the original report.
Higher energy prices matter directly to crypto investors because a sustained rise in fuel costs can feed into inflation data and influence Federal Reserve policy. Federal Reserve Chair Kevin Warsh has maintained a firm position on inflation and left open the possibility of higher interest rates, and rising Treasury yields increase the appeal of interest-bearing assets while raising financing costs, conditions that have previously weighed on Bitcoin and other assets that do not produce yield.
Where the Price Goes From Here
The decline caps a volatile turn for an asset that had just posted one of its strongest months in years. Bitcoin gained about 23 percent in August, according to market data cited in earlier coverage, before renewed geopolitical and interest-rate concerns weighed on the opening trading sessions of September. Just one day earlier, Bitcoin had held near 78,000 even as earlier exchanges between U.S. and Iranian forces pushed crude above 90 USD per barrel.
Technically, the fall below 77,000 places Bitcoin near the lower end of the range it established after its August rally. The intraday low near 76,483 has put the 76,500 area under active test by sellers, and a sustained break below that region would remove another support level that previously slowed declines. Any recovery would first require Bitcoin to regain 77,000, followed by the former support zone between 78,000 and 79,000.
The precedent is cautionary. In July, a warning of further U.S. strikes coincided with a 500 billion USD stock selloff as crude prices rose and Bitcoin came under pressure. With August inflation data and the Federal Reserve’s September policy decision still ahead, and with Tehran’s response reportedly still active late Tuesday, the immediate path for Bitcoin likely depends less on crypto-specific flows and more on whether the Strait of Hormuz becomes the flashpoint markets fear.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
115M liquidated in a single hour and the strikes arent even a day old. that 79,166 high feels like it happened last week lmao
fars and tasnim already had missiles in the air when this got posted. second wave headline coming, the 77,400 crew is gonna get their fill whether they wanted it or not
second wave headlines are a calendar item now. larak island sunday, missiles toward jordan monday, this is just the new baseline tape
laraak sunday, jordan monday, and now IRGC targets at noon. the 115M liquidated in one hour was just people refusing to accept the new baseline you mentioned
Hormuz escalation is the one macro story crypto cant ignore. Id wait to see if 76k holds before buying this dip, could get a lot cheaper first.
76k holding on day one of a shooting war is honestly stronger than i expected. still not my entry but respect
brent at 94.65 and climbing does more damage to risk assets than the strikes themselves. every percent on oil is another percent off btc bids
115M liquidated in one hour and oil ripping, textbook risk-off script. eth under 2400 hurts more than the btc chart tbh
eth under 2400 while btc is only down like 2 percent is the real tell here. alts always bleed twice as hard when geopolitics hits the tape
and its every macro scare now, not just the big ones. eth at 2400 while btc holds 76k is just the structure at this point
watching centcom statements and the chart at the same time is a new kind of stress. that 79,166 high was hours before the first strike report lol
115M liquidated in one hour and btc is somehow the one holding 76k. brent at 94 and change is running this show, crypto is just downstream of the oil tape
79,166 to 76,762 on one centcom statement and brent only settling 4.6 percent up. if hormuz actually closes this was the warning shot, not the storm
Bought at 77,400. Probably early, but geopolitical dumps have historically been the better entries in every cycle I have traded.
buying 77,400 into a live hormuz escalation is a choice. CENTCOM said strikes are ongoing, id at least wait for the second wave headline
second wave already landed while this thread argues. fars was reporting missiles midflight, buying 77,400 was catching a knife with extra steps
respect the 77,400 fill but centcom said strikes are ongoing. every geopolitical entry in history felt early right up until the second headline
brave. hormuz escalation is not priced in imo, 74k before any real bounce would not surprise me
74k feels aggressive until you remember oil is still climbing. if hormuz actually gets blocked sure, otherwise this chops around 76-77 for days imo
76-77 chop is the base case until we get an actual hormuz closure or a walkback. oil decides, the chart follows
btc went 79,166 to 76,762 off one centcom statement. anyone still calling crypto uncorrelated needs to explain today lol
correlation goes to 1 exactly when it hurts most. 2020, 2022, now again. btc is a risk asset with a crypto wrapper, dunno why this still surprises anyone
correlation goes to 1 on the way down but never on the way up, funny how that works. still waiting for the uncorrelated rally lol
brent settling 4.6 percent up at 94.65 is the actual headline. a fifth of global oil moves through hormuz, btc is just along for the risk-off ride
second this. 115m in liquidations is noise, a fifth of global oil moving through one chokepoint is the number that sets the floor for everything else
dexrex_ that 94.65 brent print is exactly why i stopped treating hormuz headlines as noise. 115M in longs gone in an hour because a strait got spicy, thats the trade now
94.65 brent with a fifth of global oil in that strait, and people are still charting btc like its own asset class lol. its a risk-off ticker now