Bitcoin’s price continued to fall on Tuesday after US President Donald Trump announced a military response against Iran, triggering a broader risk-off move across global markets and adding new pressures to an already fragile cryptocurrency sector.
summary
- Bitcoin price fell to an intraday low of $60,892 after Trump ordered a military response against Iran.
- More than $664 million worth of cryptocurrency positions were liquidated as traders reduced risk exposure.
- Glassnode says more than 8 million bitcoins are now underwater while ETF outflows and extreme fear continue to weigh on sentiment.
According to data from crypto.news, Bitcoin (Bitcoin) The price fell to an intraday low of $60,892 on June 9 before rebounding slightly to trade around $61,813 at press time. The leading asset remained down 3% over the past 24 hours, while weekly losses widened to 14% as traders continue to reduce exposure to risky assets.
Trump’s reaction on Iran has led to risk-off moves in the markets
The recent wave of selling came in the wake of a sharp escalation in tensions between Washington and Tehran. On June 9, Social Truth mailTrump said that a US Apache helicopter patrolling the Strait of Hormuz had been shot down, and declared that the United States “must necessarily respond to this attack.” US Central Command then launched retaliatory strikes against Iran.
Iranian Deputy Foreign Minister Kazem Gharibabadi denied this accusation, saying that Iranian forces did not intentionally target the plane, and pointed out that the incident occurred amid increasing military activity in the region.
The exchange has raised concerns that a fragile ceasefire reached earlier this year could collapse, raising the risk of a broader regional conflict.
Markets quickly turned to defensive mode following the developments. The price of gold rose 1.8% as investors sought traditional safe-haven assets, while concerns about potential supply disruptions sent WTI prices up 3.5%. Stock markets also weakened, with S&P 500 and Nasdaq futures trading lower as investors moved away from riskier assets.
Selling across cryptocurrency derivatives markets accelerated as leveraged positions were forced to close. According to CoinGlass data, liquidations totaled $664.86 million over the past 24 hours. Bitcoin traders accounted for $124.22 million of those losses, highlighting the severity of the decline.
Financial derivatives data indicate that some speculative surplus has been removed from the market. Bitcoin open interest fell 0.25% to $45.13 billion, as traders reduced leverage and risk exposure. While the decline was relatively modest, it indicates that participants remain cautious amid growing uncertainty.
ETF outflows and intense fear deepen Bitcoin’s decline
Beyond the geopolitical shock, Bitcoin continues to face pressure from weak institutional demand. Data from SoSoValue shows that US bitcoin exchange-traded funds have suffered significant outflows in recent weeks, with investors withdrawing nearly $4.4 billion between May 15 and June 8. The continued capital flight indicates a broader decline in institutional risk appetite for Bitcoin.
The lack of new capital entering the market has become a growing concern for analysts. According to a report by crypto.news, the trading company Wintermute to caution Current conditions make it difficult to establish a permanent bottom for the market because inflows are still insufficient to absorb ongoing selling pressures.
The company noted that Bitcoin’s volume profile has a large liquidity gap between $50,000 and $59,000, which could leave the asset vulnerable to sharp moves lower if support levels fail.
On-chain metrics also indicate increased pressure among investors. According to Glassnode, nearly half of Bitcoin’s circulating supply was generating profits at the peak of the cycle. However, after the recent correction, more than 8 million Bitcoins are now underwater.
“Today, that number has dropped sharply as more than 8 million Bitcoins remain underwater, highlighting the scale of the recent market reset.”
Investor sentiment remains very negative despite Bitcoin’s recovery from intraday lows. The Cryptocurrency Fear and Greed Index rose slightly to 10 from 8 the previous day but remained firmly in the “extreme fear” zone, underscoring ongoing concerns about macroeconomic uncertainty, ETF flows, and escalating geopolitical risks.
With institutional demand weakening, leverage declining, and geopolitical tensions adding another layer of uncertainty, traders are closely watching whether Bitcoin can hold above key support levels in the coming days.
A sustained break below the intraday low of $60,892 could expose the important psychological level of $60,000, while the liquidity gap identified by Wintermute between $50,000 and $59,000 suggests that downside risks could accelerate if sellers regain control.
Below that area, the next major support area is near $50,000, a level that could attract renewed buying interest after the recent market reset.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
