Renewed U.S.-Iran escalation pushed Bitcoin below $62,000, dragged the broader crypto market lower and drove total liquidations to $450 million as investors weighed geopolitical risk against fresh fund inflows.
Bitcoin fell below $62,000 and total cryptocurrency liquidations reached $450 million after President Donald Trump said a ceasefire with Iran was over during a NATO summit in Turkey on July 8, escalating a conflict that had already unsettled global markets. Bitcoin and Ether each dropped more than 2%, while the CoinDesk 20 Index fell 2.9% and altcoin liquidations alone topped $350 million. The latest flare-up followed months of rising tension after Iranian forces declared the Strait of Hormuz closed in February 2026, prompting a larger U.S. military presence in the region. The confrontation intensified on July 7-8 when U.S. forces struck more than 60 Islamic Revolutionary Guard Corps boats in the strait, after which Iran retaliated with attacks targeting Bahrain and Kuwait. Crypto funds nevertheless recorded $282 million in inflows during the week of renewed threats, suggesting investors remain split between reducing risk and buying into weakness as they watch whether military pressure gives way to further talks.