The US military hit Iranian missile launch sites and vessels attempting to lay mines in the Strait of Hormuz on May 25-26, blowing a hole in what was already a fragile ceasefire. Bitcoin responded the way Bitcoin does when geopolitical risk spikes: it fell off a cliff, dropping below $73,000 as traders scrambled for the exits.
Nearly $1 billion in leveraged positions were liquidated across the crypto market. Major cryptocurrencies declined 3-4%, while privacy coins like Zcash and Monero took an even harder hit, falling roughly 5%.
What happened in the Strait of Hormuz
US Central Command characterized the strikes as self-defense operations targeting direct threats to American personnel in the region. The targets included Iranian missile sites and boats that were reportedly attempting to deploy mines in one of the world’s most critical shipping corridors.
A ceasefire had technically been in effect since April 8, established during ongoing peace negotiations in Qatar. Those talks were supposed to address the thorniest issues between the two sides, particularly Iran’s nuclear ambitions and control over key maritime routes.
