Bitcoin price extended its decline on Tuesday after US President Donald Trump announced a military response against Iran, triggering a broader risk-off move in global markets and adding new pressure to the already fragile crypto sector.
Summary
- Bitcoin price fell to an intraday low of $60,892 after Trump ordered a military response against Iran.
- More than $664 million in crypto positions were liquidated as traders reduced exposure to risk.
- Glassnode says more than 8 million BTC are now underwater while ETF outflows and extreme fear continue to weigh on emotion.
According to data from crypto.news, the price of Bitcoin (BTC) fell to an intraday low of $60,892 on June 9 before recovering slightly to trade around $61,813 at press time. The bellwether stock remained down 3% in the past 24 hours, while weekly losses extended to 14% as traders continued to reduce exposure to riskier assets.
Trump’s response to Iran is causing a drop in stock markets
The latest wave of sales follows a sharp escalation in tensions between Washington and Tehran. In a June 9 Truth Social post, Trump said that an American Apache helicopter patrolling the Strait of Hormuz had been shot down and declared that the United States “must, absolutely, respond to this attack.” After that the US Central Command launched retaliatory strikes against Iran.
Iran’s Deputy Foreign Minister Kazem Gharibabadi disputed this, saying that the Iranian military had not deliberately targeted the plane and suggested that the incident occurred during an ongoing military offensive in the region.
The exchange has raised fears that a fragile ceasefire established earlier this year could unravel, increasing the risk of wider regional conflict.
Markets quickly shifted into defensive mode following the upgrade. Gold prices rose 1.8% as investors sought the traditional safe-haven asset, while concerns about a possible disruption lifted WTI crude oil prices up 3.5%. Equity markets also weakened, with both the S&P 500 and Nasdaq trading lower as investors moved away from riskier assets.
The selloff accelerated across the crypto derivatives markets as existing positions were forced to close. According to CoinGlass data, the total liquidation reached $664.86 million in the last 24 hours. Bitcoin traders accounted for $124.22 million of those losses, highlighting the severity of the decline.
Derivatives data suggest that some of the excess speculation has been removed from the market. Bitcoin open interest fell 0.25% to $45.13 billion as traders reduced leverage and risk exposure. Although the decline was very small, it shows that participants remain cautious amid the growing uncertainty.
ETF exits and fears deepen Bitcoin’s decline
Despite geopolitical shocks, Bitcoin continues to face pressure from weak institutional demand. Data from SoSoValue shows the US area Bitcoin exchanges have experienced massive outflows in recent weeks, with investors withdrawing nearly $4.4 billion between May 15 and June 8. The ongoing flight points to a broader decline in institutional risk appetite for Bitcoin.
The lack of new money entering the market has become a growing concern for analysts. As reported by crypto.news, trading firm Wintermute warned that the current conditions make it difficult to identify a long-term market because the income remains insufficient to absorb the ongoing selling pressure.
The firm noted that Bitcoin’s volume profile contains a significant gap between $50,000 and $59,000, which could leave the asset vulnerable to a sharp move lower if support levels fail.
On-chain metrics also point to growing pressure among investors. According to Glassnode, almost half of the Bitcoin in circulation was profitable at the height of the cycle. After the latest correction, however, more than 8 million BTC are now underwater.
“Today, that number has dropped significantly as over 8M BTC sits underwater, highlighting the extent of the recent market reset.”
Investor sentiment remains deeply negative despite Bitcoin’s rebound from the intraday lows. The Crypto Fear & Greed Index rose slightly to 10 from 8 a day earlier but remained firmly in the “Extreme Fear” zone, underscoring ongoing concerns about macroeconomic uncertainty, ETF exits, and rising country risks.
As institutional demand weakens, maturities can be harmed, and global tensions add another layer of uncertainty, traders are watching closely to see if Bitcoin can hold above key support levels in the coming days.
A sustained break below the recent intraday low of $60,892 could expose a key psychological level of $60,000, while Wintermute’s indexed currency gap between $50,000 and $59,000 suggests downside risks could accelerate if sellers regain control.
Below that area, the next major support area sits near $50,000, a level that could attract renewed buying interest after the recent market reset.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
