"Iran’s commitment to continue striking US military sites until Washington yields is shaking investor confidence," said a trader familiar with the Gulf region tensions. Bitcoin took an immediate hit, dropping over 2% from around $64,000 to $62,000, triggering liquidations exceeding $350 million across crypto exchanges.
From July 12 to 17, Iran launched missile strikes targeting US military bases in six Gulf countries including Bahrain, Kuwait, Qatar, Jordan, Oman, and the UAE. This broad military action marks a sharp escalation compared to earlier incidents in May, when Bitcoin fell slightly after smaller Iranian missile activity. The simultaneous strikes across multiple nations and Iran’s announced closure of the Strait of Hormuz a choke point for nearly a fifth of global oil shipments worsened market jitters, putting pressure not only on Bitcoin but also on Ethereum, Solana, and Dogecoin.
Iran’s use of cryptocurrencies to circumvent sanctions has long drawn US countermeasures, including seizure of digital assets worth hundreds of millions. Mohammad Bagher Zolghadr, appointed as Iran’s Supreme National Security Council secretary in March following a US-Israeli air strike that killed his predecessor, reaffirmed that these attacks are part of Tehran’s ongoing policy. The strategic move to threaten the Strait of Hormuz raises the stakes even further: a prolonged closure could spike oil prices, weigh on emerging markets reliant on affordable energy, and force central banks to respond to inflationary pressures.
Crypto investors now face a new reality where Iranian military actions have become a recurring macro risk influencing digital asset valuations. This year’s two major flare-ups have repeatedly rattled markets, suggesting traders must factor geopolitical volatility into their strategies. The intersection of global conflict, energy supply concerns, and crypto’s evolving role in sanctioned economies is shaping a complex landscape for digital assets moving forward.
