CoinDesk
Bitcoin broke below $73,000 on Thursday for the first time in months after U.S. Central Command carried out airstrikes on an Iranian military site near the Strait of Hormuz and shot down four one-way attack drones fired at a commercial ship. The strike reignited a conflict markets had been steadily pricing out, and crypto majors sold off 3% to 4% as nearly $1 billion in leveraged positions were liquidated over 24 hours. CoinGlass data puts the total at $958.8 million across 167,706 traders, with $897 million coming from longs and $61 million from shorts — a 93% long-skew on a near-billion-dollar flush.
Why it matters
The asymmetry of the wipeout is the story: 93% of liquidated volume was long, which is what happens when traders are positioned for a recovery and the market moves the other way. Leverage built up through the mid-May range got cleared in a single session. The largest single liquidation order was a $15.34 million BTC position on Hyperliquid. Bitcoin liquidations led the day at $386 million, followed by ether at $246 million.
The trigger was the Middle East. The U.S. Treasury imposed new sanctions on Iran's Persian Gulf Strait Authority, accusing it of extorting vessels transiting the strait, and Iran reportedly targeted the American airbase the strikes originated from, according to a report citing the Islamic Revolutionary Guard Corps. Kuwait said it was responding to hostile missile and drone threats, with its army warning that explosions heard in the country were air defense systems intercepting targets. President Donald Trump framed the U.S. posture at a cabinet meeting: "It's international waters. The strait's going to be open to everybody," adding that the U.S. would "watch over it."
Market impact
Risk assets fell across the board. The MSCI All Country World Index retreated 0.4% from a record high, an Asian shares gauge dropped 1.7%, and futures for the S&P 500 and Nasdaq 100 pointed lower. Oil climbed as the strikes clouded the outlook for a deal to reopen the strait.
Frequently asked questions
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Why did Bitcoin drop below $73,000?
Bitcoin broke below $73,000 after U.S. Central Command carried out airstrikes on an Iranian military site near the Strait of Hormuz and shot down four one-way attack drones fired at a commercial ship, reigniting a conflict markets had been pricing out.
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How much was liquidated in the crypto market sell-off?
CoinGlass data shows $958.8 million in leveraged crypto positions were liquidated over 24 hours across 167,706 traders, with $897 million coming from longs and $61 million from shorts — a 93% long-skew.
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Which assets led the liquidation cascade?
Bitcoin liquidations led at $386 million, followed by ether at $246 million. The largest single liquidation order was a $15.34 million BTC position on Hyperliquid.
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What triggered the U.S. military action against Iran?
U.S. Central Command carried out airstrikes on an Iranian military site near the Strait of Hormuz and shot down four one-way attack drones fired at a commercial ship, with a U.S. official describing the action as defensive and aimed at maintaining the ceasefire.
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How did broader risk assets react to the strikes?
The MSCI All Country World Index retreated 0.4% from a record high, an Asian shares gauge dropped 1.7%, and futures for the S&P 500 and Nasdaq 100 pointed lower while oil climbed on concerns the strikes clouded the outlook for reopening the strait.
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