Iran Conflict Sparks Bitcoin Sell-Off as US Strikes Continue
The US military launched new strikes against Iranian targets on July 29, hitting sites associated with the Islamic Revolutionary Guard Corps in southern Iran. The airstrikes targeted locations around Bandar Abbas, Kish Island, and Qeshm Island.
The timing of these strikes could not have been worse for crypto markets, as Bitcoin dropped 1-3% as traders shifted into risk-off mode.
The conflict between the US and Iran has been ongoing since February 2026, with daily airstrikes and military coordination with Israel and Saudi-aligned forces. In April 2026, US sanctions led to the freezing of approximately $344 million in Iranian-linked digital assets.
Bitcoin's behavior during this conflict is notable, as it has fallen by 1-3% each time there have been strikes. This pattern suggests that Bitcoin may be behaving more like a high-beta risk asset than 'digital gold.'