Bitcoin Crashes Below $78K as US-Iran Conflict Erupts — But Another Major Seller May Be Fueling the Drop

Bitcoin dropped in value at the start of the week after a brief retest of the $79,000 resistance level overnight on Sunday. The number one cryptocurrency fell below the $78,000 price range in response to renewed tensions between the US and Iran, and geopolitical risks in global markets.

On Sunday, US forces struck two Iranian rocket launchers positioned on Larak Island in the Strait of Hormuz, the first publicly known US strike against Iranian positions in more than a month.

Washington said the launchers had been prepared to launch rockets containing sea mines into the waterway, following missile and drone strikes from Iran against US targets in Jordan.

Later, US President Donald Trump shared an AI-generated video of explosions on Kharg Island — the main oil export terminal of Iran — with a tweet that suggested the island was being destroyed. However, according to Reuters, there was no confirmation of a strike on Kharg itself, nor was there any indication from US officials that the island had been struck.

But the war soon spread to the traditional markets, with Brent crude breaching the $90 per barrel barrier as traders began to consider risks to energy supplies through the Gulf.

Declines followed in the Asia-Pacific region, with Japan’s Nikkei down about 2%. South Korean and Chinese equities also fell, and US and European stock futures were lower. The yen traded at more than 160 to the dollar.