Bitcoin Drops Below $64,000 Amid Israel Strikes on Iran

Rising geopolitical tensions and market fears over a potential Strait of Hormuz closure pushed Bitcoin to $63,000, with heightened volatility reflecting investor risk aversion amid Middle East conflict.

BTC

HYPE

16h ago

Fact Check

Multiple credible financial and crypto market commentary sources indicate that Bitcoin's price experienced a drop to or below $64,000 during a period of heightened geopolitical tensions involving Israel and Iran. The weekly commentary from a high-authority investment institute explicitly includes both spot Bitcoin pricing and geopolitical developments, suggesting a temporal link between the drop and reported Israeli strikes on Iranian assets. Additional reputable crypto market analyses corroborate that the market price decline coincided with news of Israeli action targeting Iran, attributing at least part of the sell-off to risk-off sentiment triggered by the event. Although some geopolitical summaries focus more on regional hostility or related regional conflicts rather than detailing strikes on Iran directly, the combination of market data and event timing creates a consistent narrative. There is no substantive evidence in the reviewed materials contradicting the statement. Given the direct relevance of price data and the contemporaneous occurrence of the strikes, the likelihood of the statement being accurate is high.

Summary

Bitcoin slid to $63,000 following coordinated U.S. and Israeli strikes on Iran, which targeted nuclear and missile facilities. The crypto market, open over the weekend, absorbed investor fears of escalation and potential oil supply disruption through the Strait of Hormuz. Oil-linked futures on Hyperliquid rose over 5%, while experts highlighted the strait’s importance for 20% of global oil shipments. Some analysts said a full closure is unlikely due to geopolitical, economic, and geographic constraints. Despite a rebound to $65,000, funding rates remained deeply negative at -6%, BTC-denominated open interest rose from 668,000 to 687,000 BTC, and over $500 million in positions were liquidated, mostly longs. Analysts warn that prolonged conflict could push Bitcoin below $60,000 and deepen the bear market.

Terms & Concepts

Perpetual funding rate: A recurring payment between longs and shorts in perpetual futures to align prices with spot; negative funding implies shorts pay longs and often reflects bearish positioning.
Open interest: The total number of outstanding derivatives contracts (e.g., futures/perpetuals) that have not been settled; BTC-denominated OI reflects contracts measured in Bitcoin units.
Liquidations: Forced closures of leveraged positions when margin requirements are not met; long liquidations typically accelerate during price declines.