Bitcoin has slipped to its lowest level since late March after the United States and Iran exchanged fresh military strikes, rattling risk assets and triggering one of the largest single-day liquidation events in months.
Bitcoin (BTC) fell to $65,385 on Coinbase in early Wednesday trading, a drop of more than 7% on the day and its weakest price in nine weeks. The move follows Tuesday’s decline of over $4,500, the largest daily fall since February 5.
Liquidations hit $1.83 billion
According to CoinGlass data, around 277,000 traders were liquidated in the 24-hour period, with total liquidations reaching approximately $1.83 billion. Over 90% of those were long positions, concentrated primarily in Bitcoin and Ether.
Ether also came under pressure, extending losses alongside Bitcoin as the broader crypto market shed roughly $150 billion in total capitalisation.
What triggered the move
US Central Command confirmed on Tuesday that it had defeated multiple Iranian ballistic missiles and drones before conducting what it described as “self-defense strikes” on Qeshm Island. Iran fired several ballistic missiles at regional neighbours, including two toward Kuwait and three toward Bahrain, though CENTCOM stated all failed to reach their targets.
The strikes come amid a broader two-month ceasefire between the US and Iran, during which indirect negotiations have taken place over extending the ceasefire and reopening the Strait of Hormuz. Those talks have yet to produce an agreement.
President Donald Trump pushed back on reports that US-Iran communications had broken down, writing on Truth Social that talks had continued “including four days ago, three days ago, two days ago, one day ago, and today.” The statement followed a report by Iran’s Tasnim news agency that Tehran would halt all dialogue with Washington until Israel stopped its attacks on Lebanon.
Analysts flag liquidation cascade, not just geopolitics
Andri Fauzan Adziima, research lead at Bitwise Research Institute, told CoinTelegraph the drop was driven more by “leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure Iran news,” though he acknowledged the geopolitical backdrop was amplifying fear in the market.
Adziima pointed to real support levels between $64,000 and $65,000 and noted that any de-escalation or strong macro rebound could trigger a sharp relief rally.
Wider market impact
Oil markets moved sharply on the news, with WTI crude jumping over 3% to above $92 per barrel and Brent crude climbing toward $98. The correlation between energy markets and crypto risk sentiment has remained tight throughout the US-Iran standoff.
With ceasefire negotiations still unresolved and Trump signalling continued dissatisfaction with progress, the geopolitical pressure on risk assets, including crypto, shows no clear sign of easing in the near term.
