The US military struck multiple targets in Iran early Thursday, sending Bitcoin sliding to near $61,000 as traders fled risk assets. The attack, confirmed by Pentagon officials around 2 a.m. Eastern, marked a sharp escalation in the long-running standoff between Washington and Tehran. Bitcoin, which had been trading above $64,000 earlier this week, dropped roughly 4% in the hours after the news broke.
Why the market reacted
Geopolitical shocks have a history of rattling crypto, even as proponents call it a hedge. This time, it was no different. The strike came without warning — at least publicly — and caught many leveraged positions offside. Over $250 million in long positions were liquidated across major exchanges within the first hour, according to data from CoinGlass. That kind of forced selling amplifies the drop, and it's what pushed Bitcoin toward the $61,000 mark.
What traders are watching
The immediate question is whether this is a one-day blip or the start of a deeper selloff. Iran vowed retaliation within hours of the strike, meaning the situation could escalate further. If missile exchanges or naval skirmishes follow, risk assets — crypto included — could take another leg down. On the flip side, some traders argue that Bitcoin's long-term narrative as a non-sovereign store of value could strengthen if the conflict drags on and traditional markets freeze up.
Not a normal Tuesday
The timing isn't great. Markets were already jittery after a hawkish Fed minutes release earlier this week. Now they're staring down a potential Middle Eastern conflict. The CME Bitcoin futures gap between Thursday's close and Friday's open could be nasty. For now, volume is elevated, spreads are wide, and anyone with a stop-loss set too tight has already been taken out. The next 24 hours will tell a lot about whether $61,000 holds or becomes resistance.
