Bitcoin tumbled 3.6% to a multi-week low of $72,622 on Thursday after reports of U.S. military strikes inside Iran, sending leveraged traders scrambling. The selloff erased more than $930 million in open interest across major exchanges, the largest single-day liquidation event in two months.
Markets react to Iran strikes
The drop came fast. Prices slid from around $75,300 to the intraday low in under two hours as news broke of American airstrikes on Iranian military sites. By late afternoon, bitcoin had clawed back above $73,000, but the damage to overleveraged positions was already done.
$930 million in forced liquidations
Long positions took the brunt. Data from Coinglass shows roughly $870 million in bullish bets were closed out at a loss, while short positions accounted for the remaining $60 million. The wipeout hit traders on Binance, OKX, and Bybit hardest, each seeing more than $150 million in liquidations.
Geopolitical risk returns
This is the first major geopolitical shock for crypto this year. The strikes follow months of escalating tensions in the Persian Gulf, and markets had largely priced in a diplomatic resolution. Thursday's action suggests digital assets remain sensitive to headlines out of the Middle East, even as institutional adoption grows.
What traders are watching next
With bitcoin holding $73,000, the immediate question is whether this is a one-day shakeout or the start of a deeper correction. The next few sessions will likely hinge on any official statements from Washington or Tehran. If the situation de-escalates, a snap-back to $75,000 is possible. If not, $70,000 is the next major support level.
The futures curve has flattened, and funding rates turned negative on several exchanges — a sign that the market is now cautious after weeks of bullish euphoria. No further military updates have been confirmed as of press time.
