Bitcoin Tumbles Below $64K Amid Ongoing Iran-US Conflict

The Bitcoin price has dropped to $62,000 after failing to clear the $64,000 resistance level due to fresh US-Iran military exchanges that have delivered a blow to risk appetite. The sell-off is happening atop a shrinking stablecoin market, and institutional ETF flows are too thin to absorb the pressure.

The conflict between the US and Iran has rocked markets, with any further escalation potentially testing the psychological $60,000 support zone. If this zone is breached once more, it could see the mid-$50,000s revisited.

A fresh wave of strikes against Iran by the US military on Tuesday followed reports of attacks on three oil tankers in the Strait of Hormuz, causing the crypto market to pull back. Oil prices surged on fears of supply disruptions through the Strait of Hormuz, and the broader geopolitical risk sent capital fleeing from risk-sensitive assets.

According to FXStreet analyst Manish Chhetri, BTC has traded as a high-beta risk asset rather than a crisis hedge, a pattern that has recurred across every major Iran-escalation cycle this year.