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Bitcoin fell below $73,000 on Thursday, hitting its weakest level in more than six weeks after renewed U.S.-Iran strikes pushed traders out of risk assets and triggered a broad crypto selloff.
BTC fell as low as $72,678 before trading near $73,423, down about 3.1% on the day, while major tokens dropped roughly 3% to 4% as sentiment weakened.
BTC Hits $72,678 as Traders Cut Risk
The drop came after fresh military action cut through recent market hopes that Washington and Tehran were moving toward a deal. The latest escalation reversed part of the optimism that had briefly supported crypto when traders thought a U.S.-Iran agreement could reopen the Strait of Hormuz.
The reaction showed Bitcoin trading more like a risk-sensitive asset than a safe-haven hedge. When geopolitical risk pushes oil and the dollar higher, speculative assets often come under pressure.
Oil and Dollar Rise After Renewed Strikes
Oil rose after Iran’s Revolutionary Guards struck a U.S. airbase in response to an American attack near Bandar Abbas targeting an Iranian drone operation.
The dollar also climbed to a one-week high as the escalation revived inflation concerns and tightened broader financial conditions. That backdrop is difficult for Bitcoin. Higher oil prices can strengthen inflation fears and reduce the odds of easier monetary policy, while a firmer dollar tends to weigh on risk assets.
Longs Make Up 93% of Nearly $1B Liquidations
The selloff also triggered a sharp derivatives wipeout. Nearly $1 billion in leveraged crypto positions were liquidated over 24 hours, with about 93% of the losses coming from long positions.
Bitcoin liquidations totaled about $386 million, while Ether liquidations reached about $246 million. The figures show that the largest crypto assets were hit first as bullish positioning was unwound.
$2.26B ETF Outflows Leave Bitcoin Exposed
Bitcoin was already in a weaker position before the strikes. Earlier this week, U.S. spot Bitcoin ETFs lost roughly $2.26 billion over two weeks, while a reported $1.29 billion block trade in BlackRock’s IBIT added to concerns about weakening support for Bitcoin.
That left BTC more exposed when the geopolitical shock hit. The next market test is whether Bitcoin can hold the low-$70,000 range if Middle East tensions continue. If tensions ease, BTC could stabilize after the liquidation flush. If oil keeps rising and the conflict widens, ETF weakness and macro fear could keep pressure on the market.
