Bitcoin (BTC) plunged below the $68,000 support level on April 7, reaching an intraday low of $67,724, as global financial markets recoiled from reports of joint U.S. and Israeli military strikes on Iranian civilian infrastructure. The sharp decline reversed the gains from the previous day, when the leading cryptocurrency had risen 4% and twice tested the psychological resistance of $70,000.
Military Action in the Middle East Triggers Broad Risk Aversion
According to multiple sources, American and Israeli forces conducted coordinated attacks on Iranian power grids, railway networks, and oil facilities, following Tehran’s refusal to comply with diplomatic demands set by the Trump administration. The escalation has heightened fears of a retaliatory strike by Iran against critical infrastructure in Gulf states, with particular concern over the Strait of Hormuz—a narrow waterway through which about 20% of global oil transits.
The energy market reacted immediately: West Texas Intermediate (WTI) crude oil briefly surged to $117 per barrel before settling near $113. Analysts warn that a prolonged closure of the Strait of Hormuz would cause acute global oil shortages, potentially tipping major economies into a severe recession. This gloomy outlook sent shockwaves through risk assets, with equities and cryptocurrencies both suffering heavy losses.
Bitcoin Derivatives See $60.63M in Liquidations
The volatile price action triggered significant activity in the derivatives market. Data from Coinglass shows that total Bitcoin liquidation reached $60.63 million in the past 24 hours, primarily from long positions. This contrasts sharply with the previous session, when a short squeeze erased $145 million in bearish bets as Bitcoin rallied toward $70,000.
Technically, Bitcoin managed a brief corrective bounce to $69,200 after breaking below $68,500, but two consecutive waves of massive selling forced the price to its session low of $67,724 by 11:00 AM EST. By mid-afternoon, BTC had recovered above $68,500, attempting to consolidate for another challenge of the $69,000 level. Market participants now view the $70,000 mark as a critical resistance; failure to break through could expose the $66,000 area.
Geopolitical Risk Becomes Dominant Factor for Crypto
Analysts note that in 2026, geopolitical turmoil has overtaken macroeconomic data as the primary driver of Bitcoin’s price. Unlike previous conflicts, the current Middle East crisis directly threatens global energy supply and maritime trade routes, creating a risk-off environment of historic proportions. Should Iran retaliate after Tuesday, a sustained closure of the Strait of Hormuz could last weeks, deepening the economic impact and potentially strengthening Bitcoin’s correlation with commodities like gold and oil.
At press time, Bitcoin is trading at $68,450, down approximately 3.2% over the past 24 hours. Investors are closely watching the diplomatic and military developments between the U.S. and Iran.