The US military struck Iranian targets near the Strait of Hormuz this week, and Bitcoin reacted quickly — dropping below $79,000 for the first time in weeks. The operation, confirmed by Pentagon officials Thursday, targeted military installations linked to recent disruptions in the region. The Strait of Hormuz is a critical chokepoint for global oil shipments, and any escalation there tends to rattle risk assets, including cryptocurrencies.
The military operation
Strikes hit Iranian positions Thursday morning local time, according to US Central Command. The action came after a series of provocations, including a drone attack on a commercial tanker in the Gulf of Oman earlier this month. The Pentagon described the strikes as "proportional and necessary" to protect freedom of navigation. No US casualties were reported.
Iran immediately condemned the strikes, vowing retaliation. The Strait of Hormuz, through which roughly 20% of the world's oil passes, has been a flashpoint for years. This latest escalation is the most direct US military action against Iran since 2020.
Market reaction
Bitcoin slid sharply as news broke, falling from around $82,000 to as low as $78,600 on major exchanges before recovering slightly. The drop was broad — Ethereum, Solana and other major tokens also lost ground. Trading volumes spiked as leveraged positions were unwound.
The timing isn't great. Crypto markets have been under pressure this month amid regulatory uncertainty in the US and a broader risk-off mood. This geopolitical shock adds a fresh layer of anxiety. Safe-haven assets like gold and US Treasuries saw inflows, while oil prices jumped more than 4%.
What traders are watching now
Attention is on Iran's next move. Any retaliation — especially a blockade or harassment of tankers in the Strait — could push Bitcoin lower. The $75,000 level is the next major support on many traders' charts. For now, the market is waiting, watching headlines from the Gulf.
