Bitcoin, the largest cryptocurrency by market capitalization, fell below $70,000 overnight, reaching its lowest level since last August as military tensions returned to the Gulf region. According to data from CoinGecko, bitcoin was trading near $68,700 at 08:30 GMT, down about 6.4% over 24 hours.
Bahrain radar fuels concerns
The decline came after Iran’s Islamic Revolutionary Guard Corps announced through Iranian state media that it had destroyed a U.S. early-warning radar in Bahrain in response to an airstrike targeting a communications tower in the city of Sirik in southern Iran. CoinDesk, a specialized cryptocurrency news site, said reports of the military escalation triggered the selling wave, while oil prices were largely unaffected, with West Texas Intermediate trading near $88 a barrel.
The region has faced rising tensions since the United States resumed its strikes on Iran last July, prompting investors to reduce their exposure to high-risk assets whenever reports of confrontation resurface.
More than $1 billion in liquidations
Forced liquidations in derivatives markets deepened the losses, with futures positions worth more than $1.3 billion liquidated over 24 hours, including about $677 million in bitcoin, according to CoinGlass data. Outflows from bitcoin exchange-traded funds in the United States also continued.
Pressure increased as U.S. Treasury yields rose following higher-than-expected inflation data, alongside hawkish remarks from Federal Reserve officials. The total cryptocurrency market capitalization fell by about 6.7% to $2.34 trillion, while ether dropped below $2,000.
Bitcoin is now about 45% below its all-time high of nearly $126,000, recorded in October 2025, while the crypto market’s fear and greed index fell to 20 points, entering the “extreme fear” zone.
Photos: Anadolu, Wikimedia Commons
