US airstrikes on more than 80 Iranian targets this month sent Bitcoin tumbling below $64,000 and wiped out $350 million in leveraged crypto positions. The military escalation, which began in mid-July, rattled risk assets across the board, but crypto took an especially hard hit as long positions got caught off guard.
The military escalation
The US launched strikes on over 80 Iranian military sites in July 2026, according to reports. The move marked a significant escalation in tensions between the two countries. Markets reacted swiftly. Bitcoin, which had been trading above $68,000 earlier in the month, dropped sharply. The price fell below $64,000 within hours of the news breaking.
Liquidations pile up
The selloff triggered a cascade of forced liquidations across crypto exchanges. Data shows roughly $350 million in long positions were closed out as prices fell. That's a sizable chunk of open interest, though not as large as some past liquidation events. Still, the speed of the drop caught many traders off guard. Leverage ratios had been creeping up in recent weeks, making the market vulnerable to a sudden shock.
Bitcoin's price action
Bitcoin briefly dipped below $64,000 before finding some support. The level had previously acted as resistance during the June rally. Now it's being tested as support. Whether it holds depends on how the geopolitical situation evolves. For now, the market is in wait-and-see mode.
What traders are watching
With no immediate signs of de-escalation, traders are eyeing any diplomatic signals. The US has not indicated further strikes, but the situation remains fluid. Crypto markets, already sensitive to macro news, are likely to stay volatile. The next few days will show whether $64,000 holds or if further downside is in store.
