Iran launched drone and missile strikes on Kuwait's power and water plants Thursday, dramatically escalating Gulf tensions. The attacks pushed Bitcoin below $73,000 for the first time in weeks, with nearly $1 billion in liquidations across crypto derivatives markets.
What hit Kuwait
Multiple facilities in Kuwait were targeted by Iranian drones and missiles, according to reports. The strikes hit electricity generation and water desalination plants, knocking out critical infrastructure. Kuwait's government has not yet confirmed the full extent of damage, but the assault marks a significant escalation in a region already on edge.
Bitcoin's slide
Bitcoin shed roughly 8% within hours of the news, falling from the mid-$79,000 range to below $73,000. The move triggered a cascade of liquidations — roughly $970 million in long positions were wiped out across major exchanges, per data from Coinglass. The sell-off was broad, with Ethereum and other altcoins also dropping sharply.
Why markets reacted
Crypto markets have historically been sensitive to geopolitical shocks, especially in the Middle East, a region that hosts a significant share of mining capacity and trading activity. The timing isn't great — open interest was already elevated, and the sudden risk-off move caught many leveraged traders off guard. The exchange Bitfinex briefly paused withdrawals for about 20 minutes as traffic spiked, though it resumed normal operations soon after.
What comes next
The immediate question is whether Iran will launch further strikes and how Kuwait — and its allies — will respond. Diplomatic channels remain open, but with no cease-fire announced, traders are bracing for more volatility. The next few hours will likely determine whether Bitcoin finds support near $70,000 or slides further.
