Bitcoin Falls Below $80K as US-Iran Tensions Weigh on Crypto Markets
Bitcoin moved lower on Friday after renewed military tensions between the United States and Iran reduced investor appetite for risk-sensitive assets. The broader cryptocurrency market also traded in negative territory as geopolitical uncertainty increased.
Despite the decline, Bitcoin remained on track for its sixth consecutive weekly gain, supported by continued institutional buying, bargain-hunting activity, and progress in U.S. crypto regulation discussions.
Bitcoin dropped 1.7% to $79,679.8 by early Friday trading but was still up 1.3% for the week.
Strategy Holdings Add Additional Pressure
The leading cryptocurrency also faced pressure after Strategy Inc. announced that it may sell part of its Bitcoin holdings to fund dividend payments. However, the company did not provide details regarding the timing or scale of any potential sales.
US-Iran Conflict Hurts Risk Appetite
Global risk assets weakened after the U.S. military confirmed retaliatory strikes against Iran following attacks on three American warships passing through the Strait of Hormuz.
Iran accused the United States of violating a ceasefire agreement by targeting Iranian vessels and civilian areas earlier this week.
The latest tensions stem from a U.S. military operation intended to restore commercial shipping activity through the Strait of Hormuz. President Donald Trump later stated that the operation had been paused shortly after it began.
Iran strongly criticized the operation and appeared to be moving toward strengthening its control over the strategic shipping route.
The military escalation overshadowed earlier optimism surrounding diplomatic negotiations between the two countries, with recent reports suggesting that a potential agreement had been close.
Binance Faces New US Treasury Scrutiny
Meanwhile, Binance reportedly received a letter from the U.S. Treasury requesting compliance with an ongoing monitoring program tied to previous sanctions and anti-money-laundering violations.
According to reports, the request followed allegations that more than $1 billion in cryptocurrency transactions linked to Iranian entities passed through the exchange during 2024 and 2025.
Binance had previously agreed to enhanced monitoring measures in 2023 after pleading guilty to sanctions-related charges.
The exchange’s native cryptocurrency, BNB, fell 1.7% following the news.
Altcoins Also Move Lower
The wider crypto market declined alongside Bitcoin as investors reduced exposure to risk assets.
Ethereum dropped 2.6% to $2,275.58, while XRP fell 2.3% to $1.3825.
Solana and Cardano also recorded losses of 1.2% and 2.2%, respectively.
Among meme cryptocurrencies, Dogecoin declined 4.9%, while Official Trump gained 0.9%.
