Iran's Islamic Revolutionary Guard Corps launched missile and drone strikes against US military installations in Kuwait and Bahrain, marking a major escalation in regional conflict. The attacks targeted Ali Al Salem Air Base in Kuwait and the US Navy's Fifth Fleet facilities in Bahrain.
The IRGC framed the strikes as retaliation for prior US attacks on Iranian soil, including operations near the strategically vital Strait of Hormuz.
Bitcoin's response was immediate. The price plunged below $73,000, triggering over $1 billion in leveraged position liquidations as traders rushed to de-risk. This massive sell-off highlights how geopolitical shocks can cascade through crypto markets, forcing out over-leveraged positions.
The crypto market impact was compounded by action taken just one day prior. The US Treasury sanctioned Nobitex, Iran's largest digital asset exchange, citing its alleged connections to the IRGC and role in sanctions evasion.
While both Kuwait and Bahrain activated air defenses, the full extent of damage remains unverified. Unverified reports also suggested the conflict may have extended to Jordan, which would represent a dramatic widening of the crisis.