TLDR
- Bitcoin price fell more than 3.5% in 24 hours as renewed US-Iran tensions pressured crypto markets.
- US forces struck an Iranian military site and shot down four drones near the Strait of Hormuz.
- Iran responded by striking a US base in Kuwait, while oil prices rose around 5% after the news.
- A major investor sold 29 million BlackRock IBIT shares worth about $1.3 billion.
- Crypto liquidations climbed to nearly $1 billion as leveraged traders faced sharp losses.
Bitcoin price has dropped sharply over the past 24 hours as renewed US-Iran tensions and a major BlackRock ETF trade added pressure across crypto markets.
Reuters reported that the United States carried out fresh strikes on an Iranian military site after US forces shot down four Iranian drones near the Strait of Hormuz. An unnamed US official told Reuters that the actions were “measured, purely defensive, and intended to maintain the ceasefire.”
Bitcoin Falls as Middle East Tensions Return
Bitcoin price fell more than 3.5% during the latest market selloff, losing over $2,000 in value within 24 hours. Derivatives data cited in the report showed liquidations moved close to $1 billion as leveraged traders were forced out of positions.
The decline came as investors reacted to renewed military activity in the Middle East. According to available coverage, Iran responded by striking a US base in Kuwait. Iran’s Islamic Revolutionary Guard Corps said in a statement that “aggression will not go unanswered.”
Oil prices also rose after the reports, with crude gaining around 5%. Market reports tied the move to concerns around the Strait of Hormuz, a key route for global oil shipments. Since Bitcoin often trades alongside other risk assets during geopolitical stress, the latest military headlines added pressure on its short-term price action.
ETF Block Sale Adds More Pressure
Separately, Bitcoin also faced pressure from a large trade in BlackRock’s spot Bitcoin ETF, IBIT. Market data cited in the report showed that one investor sold 29 million IBIT shares, worth about $1.3 billion.
The transaction was described in the report as the largest block trade of its kind for the fund. The same data also showed that the sale contributed to the largest single-day outflow recorded by spot Bitcoin ETFs.
The trade drew attention because spot Bitcoin ETFs have become a major driver of Bitcoin demand since their launch. A sale of that size can affect market sentiment because institutional traders and crypto analysts closely watch ETF flows.
Traders Question Timing of IBIT Sale
The timing of the IBIT sale has raised questions among market participants. The report noted speculation over whether the seller had early knowledge of the geopolitical developments that later hit risk assets.
No evidence has been presented to support that claim, and the report did not identify the seller. However, the size of the trade made it a major talking point because it came just before Bitcoin price moved sharply lower.
ETF activity now plays a larger role in Bitcoin trading than in previous market cycles. According to market data cited in the report, large inflows or outflows from spot Bitcoin ETFs can affect short-term liquidity and investor confidence.
The latest drop also caused heavy losses across crypto derivatives markets. Liquidation data cited in the report showed that total forced closures stood slightly below $1 billion after Bitcoin’s decline.
