Crypto Markets Volatile Following US Air Strikes on Iran: Bitcoin Drops Below $73,000 with Nearly $1 Billion in 24-Hour Liquidations

According to CoinDesk on May 28, Bitcoin fell below the $73,000 psychological level during the Asian trading session, hitting a low of $72,912, marking its first breach of this support in several months.

The downturn was directly triggered by news of U.S. airstrikes on Iranian military targets near the Strait of Hormuz, resulting in nearly $1 billion in leveraged positions being liquidated within hours.

Market Overview

Ethereum (ETH) lost the $2,000 mark for the first time since March. Among major assets, only Hyperliquid (HYPE, +2.4% weekly) and Tron (TRX, +1.9% weekly) maintained positive weekly returns.

Liquidation Data: 93% of Longs Flushed Out

Data from CoinGlass indicates the following for the past 24 hours:

• Total Liquidations: $959 million (affecting 167,706 traders)

• Long Liquidations: $897 million (93% of total)

• Short Liquidations: $61 million

• BTC Liquidations: $386 million

• ETH Liquidations: $246 million

• Largest Single Liquidation: A BTC long position worth $15.34 million on Hyperliquid

The fact that 93% of liquidations were long positions suggests that the market was heavily skewed toward bullish bets. The leverage accumulated since mid-May was abruptly flushed out in a single trading day.

Geopolitical Trigger: Escalation in the Strait of Hormuz

U.S. Central Command conducted airstrikes against Iranian military facilities near the Strait of Hormuz and intercepted four Iranian one-way attack drones targeting commercial vessels. U.S. officials described the move as a "defensive action" intended to uphold the ceasefire agreement reached last month.

In response, the Islamic Revolutionary Guard Corps (IRGC) announced retaliatory strikes against U.S. bases. Kuwaiti authorities reported that their air defense systems intercepted hostile missiles and drone threats.

President Trump stated during a White House cabinet meeting: "The Strait of Hormuz is international waters and must remain open to all. The United States will ensure its security."

Global Risk Assets Under Pressure

Geopolitical tensions caused a ripple effect across global financial markets:

• The MSCI World Index pulled back 0.4% from historical highs.

• Asian equities fell by 1.7%.

• S&P 500 and Nasdaq 100 futures pointed to a lower opening.

• International oil prices rose over 2%, with Brent crude reaching $96.5 per barrel.

Market Implications and Outlook

Previously, the crypto market had remained range-bound despite several rounds of Iran-related news, with Bitcoin holding steady above $74,000. These airstrikes shattered optimism regarding a peaceful outlook. The velocity of liquidations reflects highly crowded long positioning; when market consensus was broken by geopolitical risk, leverage amplified the resulting sell-off.

In the short term, investors should monitor the navigational status of the Strait of Hormuz, the impact of oil prices on inflation expectations, and whether the record-high open interest in ETH futures continues to invite downward pressure from short sellers.

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