US Iran Strikes Push Bitcoin Below $63,000

Bitcoin dropped to roughly $62,000 following a series of US military strikes on Iranian targets, wiping out approximately $58 billion in total crypto market capitalization as the conflict threatened the Strait of Hormuz [2][4]. The broader market absorbed over $350 million in liquidations as leveraged positions were wiped out during the risk-off move [2][4].

Military strikes and risk-off sentiment

The US military conducted a five-hour operation on July 13, 2026, targeting Iranian maritime strike capabilities, including missile and drone installations at sites such as Bushehr and Bandar Abbas [2]. This operation followed a July 7 strike wave that hit over 80 Iranian targets, including air defenses and radar installations, which were a direct response to Iranian attacks on commercial vessels in the Strait of Hormuz [4]. Bitcoin, which had previously fallen below $70,000 during peak tensions, shed over 2% on the July 13 news to settle near $62,000 [1][2]. The $350 million in liquidation events suggests a significant flush of leveraged long exposure as traders reacted to the escalation [2][4].

Hormuz closure and oil price shock

Iran declared the Strait of Hormuz closed "until further notice" after the US airstrikes, shutting down a waterway that handles roughly one-fifth of the world's oil supply [3][4]. Vessel tracking data confirmed traffic dropped significantly below normal levels, with ships rerouting around the blockade [3]. Oil prices jumped more than 3% in the immediate aftermath of the strikes, introducing a commodity supply shock variable that could push inflation expectations higher [1][4]. Interestingly, Bitcoin's reaction to the closure announcement was muted, trading near $63,800 with a 0.3% decline, a contrast to earlier in the year when tensions drove Brent crude past $100 per barrel and triggered significant crypto sell-offs [3].

What to watch

• The $62,000 level: Monitor whether this price point acts as a support floor that buyers defend or if sustained pressure pushes prices lower [2].
• Strait of Hormuz shipping status: Watch for any signals from CENTCOM regarding additional operations and the resumption of commercial shipping traffic through the corridor [2][3].
• Polymarket contracts: Prediction markets forecasting the duration of the Strait's closure are seeing high volume and repricing in real-time as strike reports emerge [3].

The sustained disruption to oil shipping threatens to push inflation expectations higher, potentially tightening financial conditions for risk assets. Meanwhile, Iran's reported implementation of a cryptocurrency toll system for tanker passage introduces fresh regulatory scrutiny for the industry [4].