US military forces hit Iranian missile sites, boats, and a ground control station near Bandar Abbas over the May 25-27 window, sending shockwaves through crypto markets that are still reverberating. Bitcoin dropped below $73,000, its lowest price in months, while the broader digital asset market shed roughly $80 billion in total value.
The Pentagon framed the strikes as self-defense measures responding to Iranian drone and missile activities threatening American forces and shipping lanes in the Strait of Hormuz. Iran called them a violation of an already fragile ceasefire established in early April.
The damage across crypto markets
Bitcoin’s slide below $73,000 triggered a cascade of forced selling. Reports indicated up to $1 billion in leveraged liquidations across various cryptocurrencies within a 24-hour window. In English: traders who had borrowed money to bet on higher prices got their positions automatically closed out, which pushed prices even lower, which triggered more liquidations.
The carnage wasn’t limited to Bitcoin. Ethereum, Solana, and XRP all fell between 2% and 4% in value.
