Bitcoin Drops Below $73,000 as US-Iran Strikes Trigger $1 Billion Liquidation Wave

Bitcoin slipped below $73,000 after new US airstrikes on Iran reignited Middle East tensions and pushed global markets into risk-off mode. The price fell to about $72,578 in Asian trading, down 3.7% in 24 hours and 6.5% over the week, after touching a low of $72,600.

The move came after US Central Command carried out strikes on an Iranian military site near the Strait of Hormuz and shot down four Iranian attack drones aimed at a commercial ship. A US official said the action was defensive and meant to protect a ceasefire that had started last month. Iran reportedly responded by targeting the US airbase linked to the strikes, while Kuwait activated air defenses after missile and drone threats in the region.

Nearly $1 Billion in Crypto Liquidations Hit Traders

The sudden drop caused a major liquidation wave across crypto markets. Data shows about $958.8 million in leveraged positions were wiped out in 24 hours across more than 167,000 traders. Long positions made up $897 million of the losses, while shorts lost around $61 million.

Bitcoin accounted for $386 million in liquidations, followed by Ether at $246 million. Solana, XRP, and Dogecoin also fell between 3% and 4%.

Risk Markets Turn Lower as Oil Rises

Stocks also weakened, with Asian markets and US futures turning lower, while oil prices climbed on fears of disruption in the Strait of Hormuz. Trump said the waterway would remain open and called it international waters.