Bitcoin plunged below $66,000, marking its steepest single-day decline since early February. The cryptocurrency slid to $65,385 in early trading on Wednesday, a level not seen in nine weeks, following a renewed wave of conflict between the US and Iran that stalled ongoing ceasefire talks.
Market data revealed that this sell-off sparked liquidations exceeding $1.8 billion within 24 hours, dominated by long positions mainly in Bitcoin and Ether. Over 270,000 traders were forced out as Bitcoin dropped, intensifying market turmoil amid geopolitical tension.
The renewed hostilities come after US Central Command reported intercepting multiple Iranian ballistic missiles and drones, and conducting retaliatory strikes on Qeshm Island. Iran fired missiles toward regional neighbors including Kuwait and Bahrain, all of which reportedly missed their targets. These military actions have aggravated fears already affecting crypto markets.
Experts suggest that while the Iran-related conflict added to market anxiety, Bitcoin’s steep decline reflects a combination of factors such as leveraged liquidations, significant exchange-traded fund (ETF) outflows, and technical breakdowns. The current technical support for Bitcoin is considered to be around $64,000 to $65,000, where analysts expect some stabilization amid ongoing volatility.
Despite strained indirect negotiations over a ceasefire and attempts to lift blockades in strategic maritime routes, no agreement has been reached. The uncertainty around these talks has amplified investor caution, feeding into Bitcoin’s price instability. Amidst this, US-Iran communication reportedly continues, although Iran has conditioned dialogue on ceasing Israeli military actions in Lebanon.