Bitcoin price fell below $77,000 after fresh U.S. military strikes on Iranian targets sent oil prices higher and triggered heavy selling across cryptocurrency and stock markets.
Bitcoin falls below $77,000 as U.S. strikes hit Iranian targets
U.S. Central Command said American forces began striking Islamic Revolutionary Guard Corps targets in Iran at 12 p.m. ET on Tuesday. CENTCOM cited recent attempted attacks against commercial vessels in the Strait of Hormuz and U.S. military personnel stationed in the region.
Bitcoin ($BTC) dropped through $78,000 as reports of the operation emerged before extending its decline below $77,000. The cryptocurrency traded around $76,762 at the time of writing, down from an intraday high near $79,166.
Ethereum (ETH) also came under pressure, falling below $2,400 during the market decline. According to CoinGlass data cited in the original report, approximately $115 million in leveraged long positions across the cryptocurrency market were liquidated within one hour.
Liquidations occur when an exchange closes a leveraged position after a trader’s collateral can no longer cover mounting losses. A rapid price decline can force long positions to close, adding further sell orders to an already weak market.
Bitcoin had held near $78,000 one day earlier, even as earlier exchanges between U.S. and Iranian forces pushed crude oil prices above $90. The latest strikes renewed pressure on that level and ended Bitcoin’s brief attempt to hold above short-term support.
The decline followed a strong August for Bitcoin. According to market data cited in earlier coverage, $BTC gained about 23% during the month before renewed geopolitical and interest-rate concerns weighed on the opening trading sessions of September.
U.S. strikes increase pressure around the Strait of Hormuz
According to CENTCOM’s account, the operation followed alleged Iranian attempts to attack commercial shipping in the Strait of Hormuz and American service members deployed to the region.
Iranian state media reported explosions across several locations along the country’s southern coast, including Qeshm Island, Bandar Abbas and Chabahar. Reports cited by Axios also identified Jask, Konarak, Minab and Sirik among the areas struck.
Qeshm Island and Bandar Abbas are close to the Strait of Hormuz, a key passage connecting Persian Gulf energy exporters with international markets. Before the current conflict, roughly one-fifth of global oil and liquefied natural gas supplies moved through the waterway, according to Reuters data previously cited in market coverage.
The Associated Press reported that Tuesday’s action ended roughly a month without direct military exchanges between the two countries. 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.
Following Tuesday’s strikes, Iranian semi-official news agencies Fars and Tasnim reported that Tehran had begun launching missiles and drones in response. An IRGC spokesperson said the United States “will regret its new attacks,” according to Fars.
President Donald Trump described the American operation as “large and powerful” and warned Tehran against further retaliation. According to Trump, another Iranian response would lead to a “much harder and higher level” of U.S. attack.
Iranian President Masoud Pezeshkian said earlier on Tuesday that Tehran was prepared to return to a ceasefire agreement brokered with Washington in June if the United States followed its terms. Trump later questioned the value of another agreement in comments reported by the Associated Press.
Oil above $90 raises inflation and interest-rate concerns
Crude oil prices accelerated as military activity returned to areas around the Strait of Hormuz. Reuters reported that Brent crude settled 4.6% higher at $94.65 per barrel, while U.S. West Texas Intermediate rose 5.2% to $90.22.
Oil traders were also monitoring reports that two tankers had been hit while leaving the strait. Iranian officials have warned that Gulf oil exports could face additional disruption if military and economic pressure on Tehran continues.
Earlier exchanges between Washington and Tehran had already highlighted financial markets’ sensitivity to oil supply risks. In July, a warning of further U.S. strikes coincided with a $500 billion stock selloff as crude prices rose and Bitcoin came under pressure.
Higher energy prices are important to U.S. cryptocurrency investors because a sustained increase in fuel costs can feed into inflation data and influence Federal Reserve policy. U.S. Treasury yields rose during Tuesday’s trading, while the S&P 500 fell to its lowest level since Aug. 4, according to market data cited in the original report.
August inflation data and the Federal Reserve’s September policy decision could therefore influence Bitcoin’s next move. Bitcoin rebounded in August after CPI data showed annual U.S. inflation at 3.4%, but oil supply disruptions could create fresh pressure on subsequent readings.
Federal Reserve Chair Kevin Warsh has maintained a firm position on inflation and left open the possibility of higher interest rates. Rising Treasury yields can 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.
U.S. markets fall as leveraged crypto positions unwind
The pressure from the military escalation extended beyond digital assets. U.S. equities declined as investors assessed the impact of higher oil prices, while a selloff in government bonds pushed Treasury yields upward.
Bitcoin’s fall below $77,000 placed the asset near the lower end of the price range established after its August rally. The intraday low near $76,483 left the $76,500 area as an immediate level tested by sellers, based on market pricing during the session.
A sustained break below that region would remove another support area that had 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.
Liquidation data provide another measure of the pressure facing leveraged traders. CoinGlass attributed the one-hour liquidation total of roughly $115 million mainly to long positions, indicating that traders positioned for higher prices absorbed most of the forced closures during the drop.
Meanwhile, Iran’s response remained active late Tuesday, with Fars and Tasnim reporting new missile and drone launches after the U.S. operation. American officials said the initial strikes targeted Iranian radar and military capabilities associated with threats to commercial vessels and U.S. personnel.
