The seven-week ceasefire between the United States and Iran collapsed in a barrage of missiles. US forces struck Iranian missile sites and mine-laying vessels near Bandar Abbas on May 25-26, 2026. Iran retaliated with missile strikes against US-linked bases in the region.
Bitcoin dropped below $73,000, its lowest level in six weeks. The broader digital asset market shed roughly $80 billion in value within 24 hours. Approximately $1 billion in leveraged positions were liquidated across major trading platforms.
The Strait of Hormuz, through which one-fifth of the world's oil passes, remains the strategic flashpoint. The Pentagon called the operation defensive. Iran's Islamic Revolutionary Guard Corps responded with force.
Traders had been heavily positioned for continued upside, anchored to the narrative of diplomatic progress in Qatar. When that narrative broke, the market had no cushion. The conflict now threatens global energy supplies, inflation expectations, and central bank policy, reshaping the macro environment for crypto prices.