Bitcoin falls below $66K amid US-Iran tensions and liquidations
In brief
- Bitcoin dropped 7% on Tuesday, marking its largest daily fall since early February
- 277,000 traders liquidated in 24 hours, totaling $1.83 billion in losses
- 90% of liquidations were long positions in Bitcoin and Ether
- US-Iran military strikes triggered a $150 billion crypto market cap exodus
- Analysts attribute the move to leverage and technical breakdown, not geopolitics alone
The liquidation cascade
Bitcoin prices dropped 7% on the day, breaking key support to a nine-week low. The selling pressure came with brutal consequences for leveraged traders. Around 277,000 traders were liquidated over the past 24 hours, with total liquidations reaching around $1.83 billion. More than 90% of those liquidations were long positions, primarily in Bitcoin and Ether.
The cascade accelerated as margin calls forced positions closed at market prices. Each liquidation fed the next, creating a feedback loop that pushed prices lower.
Geopolitical backdrop
The timing coincided with fresh military action. US Central Command stated it had successfully defeated multiple Iranian ballistic missiles and drones and conducted self-defense strikes on Qeshm Island. Iran launched several ballistic missiles toward regional neighbors, with two fired at Kuwait and three at Bahrain, but all failed to hit their intended targets.
A $150 billion crypto market capitalization exodus occurred as the US continued military strikes. Yet the broader context suggests the geopolitical angle may be overstated. A two-month ceasefire between the US and Iran has included indirect talks on extending the ceasefire and lifting a blockade of the Strait of Hormuz, but negotiations have yet to yield an agreement. Iran's Tasnim news agency reported that the country would halt all conversations with the US until Israel ceased attacking Lebanon.
What analysts see
Andri Fauzan Adziima, research lead at Bitrue Research Institute, offered a different read. He attributed Bitcoin's drop more to leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure geopolitical headlines. "Bitcoin's current drop is more about 'leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure Iran news, but it amplifies the fear,'" Adziima told Cointelegraph.
Looking ahead, Adziima expected choppy consolidation with real support around $64,000 to $65,000, and potential for a sharp relief rally on de-escalation or strong macro rebound. The recovery depends on whether buyers emerge at these levels or if fear continues to dominate.
Frequently asked questions
Why did Bitcoin fall below $66K?
Bitcoin dropped 7% on Tuesday due to a combination of leveraged liquidations ($1.83 billion across 277,000 traders), heavy ETF outflows, technical breakdowns, and geopolitical tensions between the US and Iran. More than 90% of liquidations were long positions in Bitcoin and Ether.
What support levels does Bitcoin have?
Analysts expect real support around $64,000 to $65,000 after Bitcoin fell to $65,385 on Wednesday, its lowest level since late March. A potential relief rally could occur on de-escalation news or a strong macro rebound.
What military action triggered the selloff?
US Central Command conducted self-defense strikes on Qeshm Island and defeated Iranian ballistic missiles and drones. Iran launched missiles toward Kuwait and Bahrain, but all failed to hit their targets. However, analysts say the geopolitical angle amplifies fear more than it directly caused the price drop.
