Iran launched a wave of missiles and drones at US military targets across six Gulf States between July 12 and 17, marking the most significant direct confrontation between the two nations in decades. The attacks struck US assets in Bahrain, Kuwait, Qatar, Jordan, Oman, and the UAE, and the crypto market responded exactly how you’d expect: with panic selling and a cascade of forced liquidations.
Bitcoin fell more than 2%, sliding to approximately $62,000. Roughly $350 million in liquidations hit the broader digital asset market as traders scrambled to de-risk portfolios in the face of what looks like a genuine regional war.
What happened and why crypto cares
The Iranian strikes were retaliatory. The US had previously conducted operations targeting Iranian command centers, missile installations, and coastal defense systems. Iran’s response was broad, hitting American positions across half a dozen countries in quick succession.
On July 11, one day before the first missile strikes, Iran announced it was re-closing the Strait of Hormuz. The $350 million liquidation wave tells a deeper story. Leveraged long positions got wiped out as the price cascaded through support levels, a familiar pattern whenever a geopolitical shock catches the derivatives market leaning the wrong direction.
