BREAKING: Bitcoin Crashes Below $73K as U.S. Strikes on Iran Trigger $1 Billion in Crypto Liquidations
- Gator
- May 29
- 2 min read
U.S. airstrikes near the Strait of Hormuz just nuked the crypto market — Bitcoin dropped below $73,000 and nearly $1 billion in leveraged positions were liquidated in 24 hours as the U.S.-Iran conflict reignited and the ceasefire collapsed.
What Happened
After weeks of fragile peace talks, the U.S. launched fresh airstrikes targeting Iranian positions near the Strait of Hormuz on May 28. The news hit markets instantly. Bitcoin fell from around $76,000 to as low as $72,800, a drop of more than 4.5%, with crypto trading like a pure risk asset alongside tumbling equities and surging oil prices.
CoinGlass data pegged total liquidations at $958.8 million across more than 167,000 traders in 24 hours — $897 million of that from long positions. Bitcoin longs alone accounted for $386 million. Ethereum got slammed for another $246 million. SOL, XRP, BNB, and DOGE each fell roughly 4%.
Why It Matters
The Strait of Hormuz handles about 20% of global oil supply. When it's threatened, oil spikes — and risk assets get dumped fast. WTI crude jumped nearly 5% on the news, and U.S. Treasury yields climbed back above 5.1%, adding more pressure to already fragile crypto positioning.
This isn't just one bad day. Bitcoin spot ETFs had already bled over $1.5 billion in outflows during the week prior, and the Fear & Greed Index crashed to 31 — deep in fear territory. The market was crowded with bullish leverage heading into this, which is exactly why the liquidation cascade was so brutal.
Market Reaction
Bitcoin: ~$72,800 — down 4.5%+ in 24 hours, 6-week low
Ethereum: broke below $2,000, down ~4%
Total liquidations: ~$958M in 24 hours ($897M longs)
Bitcoin ETF outflows: $1.5B+ the prior week
Crypto Fear & Greed Index: 31 (Fear)
Oil: +5% on Strait of Hormuz fears
What's Next
All eyes are on whether the U.S. and Iran can get back to the table. Any de-escalation signal could spark a sharp relief rally — but as long as Hormuz is in the headlines, expect crypto to keep getting treated as a risk-off casualty. Key support to watch: $70,000 on Bitcoin. A close below that opens up an ugly picture for bulls. Traders are also watching today's $6.25 billion options expiry on Deribit, where max pain sits around $75,000 — the options market may add another layer of pressure into the close.
Stay tuned. This situation is moving fast. ☕₿
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