Bitcoin Falls Below $73,000 as Iran Tensions Shake Crypto Markets
Bitcoin dropped sharply on Thursday, falling below the $73,000 level and reaching its lowest point in more than six weeks after renewed U.S. military strikes on Iran triggered a broad selloff across cryptocurrency markets.
The world’s largest cryptocurrency was last trading 4% lower at $72,782.9 by 02:38 ET (06:38 GMT), marking its weakest level since mid-April.
Meanwhile, Ether, the second-largest cryptocurrency, declined 5% to $1,975.63, hitting a two-month low.
Fresh US Strikes on Iran Push Oil Prices Higher
Market sentiment weakened after reports emerged that the United States carried out another round of military strikes on Iran this week, reducing optimism for a near-term diplomatic agreement and driving oil prices higher once again.
Brent crude oil rebounded above $97 per barrel after sliding in the previous session amid hopes of possible negotiations between Washington and Tehran.
Financial markets had temporarily recovered on Wednesday after Iranian state-linked media suggested progress toward a framework agreement that could reopen shipping routes through the Strait of Hormuz.
However, those hopes faded after U.S. President Donald Trump rejected reports claiming Iran and Oman would jointly oversee shipping operations under a proposed arrangement.
Rising Oil Prices Weigh on Risk Assets
Higher energy prices and escalating geopolitical tensions continued to pressure risk-sensitive assets, including cryptocurrencies.
Investors are also closely watching upcoming U.S. inflation data, which could influence expectations surrounding future Federal Reserve interest-rate decisions.
Analysts warn that persistent inflation combined with elevated oil prices may force the Federal Reserve to keep interest rates higher for longer, creating additional pressure on digital assets.
Institutional Selling Adds Pressure on Bitcoin
Bitcoin also faced additional downside pressure from ongoing institutional selling activity and significant outflows from spot Bitcoin exchange-traded funds.
According to data from SoSoValue, U.S. spot Bitcoin ETFs recorded net outflows of $733.43 million on May 27, representing one of the largest daily withdrawals seen in recent weeks.
Crypto-related ETFs have now experienced more than $2.5 billion in net outflows over the past two weeks.
Market analysts also highlighted a reported $1.29 billion dark-pool block trade connected to BlackRock’s iShares Bitcoin Trust ETF (IBIT), which coincided with Bitcoin’s sharp reversal earlier this week.
Altcoins Extend Sharp Declines
The broader cryptocurrency market also remained under heavy pressure on Thursday.
XRP, the world’s third-largest cryptocurrency by market capitalization, fell 3.7% to $1.29.
Solana declined 4%, while Cardano and Polygon each dropped around 4.5%.
Among meme cryptocurrencies, Dogecoin slipped approximately 4.2% as selling pressure intensified across the sector.
