Bitcoin plummeted Thursday morning as President Donald Trump delivered a prime-time address on military operations against Iran, triggering massive market sell-offs across crypto, gold, and U.S. stocks.
Bitcoin fell from $69,100 to lows of $66,250, down 3.3% for the day, with over $386 million in cryptocurrency positions liquidated following Trump's declaration of Operation Epic Fury successes.
Trump announced Iran's navy had been destroyed, air force ruined, and missile capabilities dramatically curtailed during the one-month campaign. He vowed to continue hitting Iran "extremely hard" over the next two to three weeks.
The broader market collapse included the S&P 500 dropping roughly 2%, gold declining 4%, while crude oil surged from $98 to $107 per barrel on supply chain concerns.
Institutional Bitcoin ETF support crumbled as spot Bitcoin ETFs recorded their first outflow in four weeks, pulling $296.18 million last week.
Crypto exchange BTSE COO Jeff Mei attributed the risk asset decline to Trump's unclear position on reopening the Strait of Hormuz, creating persistent supply uncertainty.
Market makers now see 74% probability crude oil reaches $120 per barrel as shipping activity through the Strait of Hormuz remains severely restricted.