TLDR
- Bitcoin fell 1.7% to around $79,600 on Friday due to U.S.-Iran military escalation in the Strait of Hormuz
- Despite the drop, Bitcoin is still on track for its sixth straight week of gains
- Strategy Inc warned it may sell some Bitcoin holdings to pay dividends
- Binance received a U.S. Treasury letter demanding compliance with a sanctions monitoring program after reports of $1 billion in crypto flowing to Iran-linked entities
- U.S. stock futures edged higher Friday morning ahead of the April jobs report, while crude oil prices jumped roughly 2%
Bitcoin pulled back sharply on Friday as military clashes between the U.S. and Iran near the Strait of Hormuz spooked investors across crypto and stock markets.
The price dropped 1.7% to $79,679, though Bitcoin remained up 1.3% for the week — marking its sixth consecutive weekly gain.
The conflict began after the U.S. launched an operation to restore commercial shipping through the Strait of Hormuz. Iran opposed the move and accused the U.S. of violating a ceasefire.
The U.S. military then confirmed it had struck back against Iran following attacks on three American warships in the strait. President Trump posted on Truth Social that U.S. destroyers were unharmed and described the response as limited.
🚨 JUST IN: President Trump CONFIRMS Iran attempted to ATTACK three US Naval vessels in the Strait of Hormuz — says our destroyers suffered NO DAMAGE
Thank God!
Trump said the US sent Iran’s attack boats to the bottom of the sea
“Three World Class American Destroyers just… pic.twitter.com/5JAHNMc2zV
— Nick Sortor (@nicksortor) May 7, 2026
Trump also claimed to have paused the operation just days after it launched. Despite this, markets reacted negatively as the situation remained tense.
Earlier reports suggested a deal between the U.S. and Iran was close. But Thursday’s military exchange largely overshadowed those comments.
Strategy Inc May Sell Bitcoin Holdings
Adding pressure to Bitcoin’s price, Strategy Inc — the largest corporate holder of Bitcoin — said it may sell some of its holdings to fund dividend payments.
The company did not give a timeline or specify how much it might sell. The uncertainty alone was enough to weigh on sentiment.
Ether fell 2.6% to $2,275, while XRP dropped 2.3% to $1.38. Solana fell 1.2% and Cardano dropped 2.2%. Dogecoin led losses among memecoins, falling 4.9%.
Binance Under U.S. Treasury Scrutiny
Binance, the world’s largest crypto exchange, received a letter from the U.S. Treasury on Thursday demanding it follow a sanctions monitoring program.
The letter came after reports that over $1 billion in crypto passed through Binance to Iran-linked groups in 2024 and 2025.
Binance had previously agreed to this monitoring program in 2023 after pleading guilty to sanctions and anti-money-laundering violations.
Binance’s native token fell 1.7% on Friday following the news.
On the stock side, U.S. futures edged higher Friday morning. Futures tied to the S&P 500 rose 0.3%, Nasdaq 100 futures climbed 0.5%, and Dow futures rose 0.2%.
Crude oil prices jumped roughly 2% after the military clashes. West Texas Intermediate crude rose sharply in after-hours trading.
Investors were also watching Friday’s April jobs report. Economists estimated nonfarm payroll growth of 65,000, with the unemployment rate expected to stay at 4.3%.
Earnings reports were also due Friday from Toyota Motor, Sony, and Brookfield Asset Management.
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