Bitcoin’s price slipped below $73,000 for the first time in months, driven by new U.S. military actions in Iran that sent risk assets tumbling and triggered significant liquidation across cryptocurrency markets. During Asian trading hours on Thursday, Bitcoin traded at $72,978, reflecting a 3.4% decline over the preceding 24 hours and a 6.3% drop for the week, even reaching a low of $72,912 earlier.
Ethereum (ETH) also faced setbacks, falling by 4.2% to $1,976, thereby losing its foothold above the $2,000 mark, and experiencing a 7.7% decrease over the week. Other cryptocurrencies were similarly affected: Solana (SOL) dropped 3.5% to $80.57, XRP declined 3.6% to $1.28, and Dogecoin fell 3.2% to $0.0979. In contrast, Hyperliquid (HYPE) witnessed a minor loss of 4.5% for the day but managed to post a 2.4% gain over the week, while Tron (TRX) maintained a 1.9% weekly increase amidst the broader downturn.
The liquidation event was substantial, with CoinGlass reporting a combined $958.8 million in liquidations across 167,706 traders within just 24 hours. Of this total, $897 million came from liquidating long positions, while short positions accounted for $61 million. Bitcoin liquidations were the highest, totaling $386 million, with Ethereum lagging behind at $246 million. Notably, the largest single liquidation order was recorded at $15.34 million for a Bitcoin position on Hyperliquid.
This significant market move was fueled by geopolitical tensions. U.S. Central Command conducted airstrikes on an Iranian military installation near the Strait of Hormuz and intercepted four Iranian drones targeting commercial vessels. U.S. officials described the military action as defensive, aimed at upholding a ceasefire initiated the previous month. In response, Iran reportedly targeted the American airbase from which the strikes originated, escalating the situation further, while Kuwait’s military warned of missile and drone threats leading to intercepted explosions.
Former President Donald Trump reaffirmed the U.S. stance on the Strait of Hormuz, emphasizing its status as international waters and stating, “The strait’s going to be open to everybody.” This geopolitical backdrop contributed to the widespread decline in risk assets. The MSCI All Country World Index dipped 0.4% from its recent record high, and Asian share indices fell by 1.7%. Futures for the S&P 500 and Nasdaq 100 also reflected negative sentiment, while oil prices increased as concerns about the stability in the region elevated.
The swift triggered liquidation highlighted how quickly market sentiments can shift, with optimism around a ceasefire quickly evaporating. Despite holding steady in the face of weeks of tensions involving Iran, Bitcoin’s support level was breached in light of the recent escalations, indicating that many traders had positioned themselves in anticipation of a recovery that did not materialize.
