Bitcoin slid sharply in Asian trading on Monday, falling from around $67,767 to an intraday low of $65,226, a drop of about 3.7%. The move came one day after BTC had rallied nearly 7% on Sunday, when traders briefly leaned toward the view that the latest U.S.-Iran developments could reduce the intensity of the conflict.
That rebound did not hold. As the market reassessed the political fallout in Tehran and the risk of continued military escalation, leveraged long positions built during the rally came under pressure. Once prices turned lower, liquidations accelerated the move and forced selling spread across exchanges.
Long liquidations added to the downside
CoinGlass data shows more than $121 million in long positions were liquidated over the last 24 hours, compared with about $48 million from bearish traders. The imbalance points to a market that had become crowded on the long side, leaving BTC vulnerable to a fast unwind.
This was not only a technical pullback. Bitcoin often reacts quickly when geopolitical stress pushes traders to reduce exposure to volatile assets, and that pressure becomes more visible when leverage is already elevated.
Iran mining concerns returned to the market
A major part of the sell-off was tied to concern over Bitcoin mining activity in Iran after the latest U.S. missile strikes on key Iranian military facilities. Traders are watching the possibility that escalating conflict could disrupt the country’s power grid and affect miners operating with subsidized electricity.
If mining throughput falls, companies in the region may need to sell BTC holdings to cover operating costs and losses. The article does not quantify that supply risk, but the possibility alone was enough to weigh on sentiment as the market repriced short-term downside.
Hormuz developments lifted inflation concerns
Another source of pressure came from the energy market after the Iranian government said it would close the Strait of Hormuz, a critical shipping route linking the Persian Gulf and the Gulf of Oman. Over the weekend, shipping traffic in the area came to a halt as Iran launched counter-strikes against U.S. and Israeli interests.
Higher oil and commodity prices then fed concern about a fresh energy-driven inflation impulse in the United States. That shift matters for crypto traders. When inflation fears rise, appetite for risk tends to weaken and capital can rotate toward traditional safe-haven assets such as gold.
CME gap near $65,880 remained in focus
Traders were also watching a CME gap around $65,880. A CME gap forms when the Monday opening price in CME Bitcoin futures differs from the Friday close. Historically, Bitcoin has often moved back to fill such gaps, making that level important for short-term positioning.
With uncertainty around the U.S. market open, geopolitical risk, energy-price stress and the gap structure were all pressing on sentiment at the same time. That combination left Bitcoin under broad pressure through Monday’s session.