Bitcoin falls to $62,657 as US-Iran strikes strengthen dollar

US military strikes on more than 80 Iranian sites sent Bitcoin below $63,000 as the dollar rallied on safe-haven demand.

Bitcoin fell 1% to $62,657 during Asian trading on July 8 as US strikes on Iranian military sites strengthened the dollar and curbed appetite for risk assets. The decline extended a pattern established during earlier rounds of the conflict, when Bitcoin dropped below $73,000 in May and again toward $63,000 in June, with nearly $1 billion in cumulative liquidations across those episodes.

"Geopolitical shocks of this magnitude trigger an immediate flight to dollar-denominated safe havens, which creates headwinds for Bitcoin in the short term," said Nina Volkov, macro analyst at Edgen. "The transmission chain runs through the dollar index and oil prices, not through any crypto-specific catalyst."

US Central Command's July 7 operation hit more than 80 Iranian sites near the Strait of Hormuz, following Iranian drone attacks on the Singapore-flagged cargo ship Ever Lovely. Previous strikes on June 27 and June 10 targeted missile systems, drone infrastructure and radar positions in Sirik County and on Qeshm Island. The May liquidation events triggered nearly $1 billion in forced closures across Binance and OKX, with leveraged long positions bearing the brunt, Coinglass data shows. Bitcoin's market cap stood at roughly $1.24 trillion, with dominance near 54% as altcoins tracked the broader selloff.

Oil, Rates and the Next Threshold

The Strait of Hormuz carries roughly 20% of global oil trade through a corridor 21 miles wide at its narrowest point. A sustained disruption would push energy prices higher, feeding inflation expectations and complicating the Federal Reserve's rate path — a scenario that historically pressures non-yielding assets. Iran's Islamic Revolutionary Guard Corps has indicated the possibility of retaliation, keeping the risk of further escalation elevated. NATO's chief described the US strikes as "absolutely necessary," a sign of continued allied support for the military campaign. Bitcoin's next support sits at $60,000, a level tested during the May selloffs, with resistance at $65,000. The 24-hour trading volume across crypto exchanges reached $38 billion, below the seven-day average of $45 billion, reflecting reduced participation as institutional investors trimmed risk.

This article is for informational purposes only and does not constitute investment advice.