Bitcoin Price Plummets Below $77K Amid US-Iran Conflict Escalation

The ongoing US-Iran conflict has sent shockwaves through global markets, including cryptocurrency. On Tuesday, the United States carried out strikes against targets in Iran, with operations beginning at 12 p.m. ET. According to the U.S. Central Command, the action was linked to recent attempted attacks around the Strait of Hormuz.

Iranian state media reported explosions on Qeshm Island, which sits along the northern side of the strait, as well as reports of explosions in Bandar Abbas and Chabahar. The strikes have caused a decline in cryptocurrency prices, with Bitcoin falling below $78,000 to trade at around $76,762.

Ethereum also fell below $2,400 as selling spreads across the crypto market. Due to the decline, leveraged crypto positions are being hit as traders react to the latest military developments. About $115 million in long positions were liquidated within one hour.

The decline is not limited to cryptocurrency markets, with the S&P 500 falling to its lowest level since August 4, while U.S. Treasury yields are rising. U.S. oil prices are moving toward $90 per barrel following reports of the latest strikes, with Brent crude nearing $93 as traders monitor shipping conditions around the strait.

Iranian officials are continuing to warn that Gulf oil exports could face disruption if military and economic pressure increases. President Donald Trump has described the latest U.S. strikes as 'large and powerful' and warned Iran against launching another military response, stating that they would face a 'much harder and higher level' of attack if they retaliated.