Bitcoin price extended its decline on Tuesday after U.S. President Donald Trump announced a military response against Iran, triggering a broader risk-off move across global markets and adding fresh pressure to an already fragile crypto sector.
Summary
- Bitcoin price fell to an intraday low of $60,892 after Trump ordered a military response against Iran.
- More than $664 million in crypto positions were liquidated as traders reduced risk exposure.
- Glassnode says over 8 million BTC are now underwater while ETF outflows and extreme fear continue to weigh on sentiment.
According to data from crypto.news, Bitcoin (BTC) price fell to an intraday low of $60,892 on June 9 before recovering slightly to trade around $61,813 at press time. The bellwether asset remained down 3% over the past 24 hours, while weekly losses widened to 14% as traders continued reducing exposure to risk assets.
Trump’s Iran response triggers risk-off move across markets
The latest wave of selling followed a sharp escalation in tensions between Washington and Tehran. In a June 9 Truth Social post, Trump said an American Apache helicopter patrolling the Strait of Hormuz had been shot down and declared that the United States “must, of necessity, respond to this attack.” U.S. Central Command subsequently launched retaliatory strikes against Iran.
Iranian Deputy Foreign Minister Kazem Gharibabadi disputed the accusation, saying Iranian forces had not intentionally targeted the aircraft and suggesting the incident occurred amid heightened military activity in the region.
The exchange has raised fears that the fragile ceasefire established earlier this year could unravel, increasing the risk of a broader regional conflict.
Markets quickly shifted into defensive mode following the developments. Gold price climbed 1.8% as investors sought traditional safe-haven assets, while concerns about potential supply disruptions pushed WTI crude oil prices up 3.5%. Equity markets also weakened, with both S&P 500 and Nasdaq futures trading lower as investors moved away from higher-risk assets.
The selloff accelerated across crypto derivatives markets as leveraged positions were forced to close. According to CoinGlass data, total liquidations reached $664.86 million over the past 24 hours. Bitcoin traders accounted for $124.22 million of those losses, highlighting the intensity of the decline.
Derivatives data suggests some speculative excess has been flushed from the market. Bitcoin open interest slipped 0.25% to $45.13 billion as traders reduced leverage and risk exposure. While the decline was relatively modest, it indicates participants remain cautious amid heightened uncertainty.
ETF outflows and extreme fear deepen Bitcoin’s decline
Beyond the geopolitical shock, Bitcoin continues to face pressure from weakening institutional demand. Data from SoSoValue shows U.S. spot Bitcoin exchange-traded funds have suffered heavy outflows in recent weeks, with investors withdrawing roughly $4.4 billion between May 15 and June 8. The sustained capital flight points to a broader decline in institutional risk appetite toward Bitcoin.
The absence of fresh capital entering the market has become a growing concern for analysts. As per a report by crypto.news, trading firm Wintermute warned that current conditions make it difficult to identify a durable market bottom because inflows remain insufficient to absorb ongoing selling pressure.
The firm noted that Bitcoin’s volume profile contains a significant liquidity gap between $50,000 and $59,000, potentially leaving the asset vulnerable to sharp moves lower if support levels fail.
On-chain metrics also point to increasing stress among investors. According to Glassnode, nearly half of Bitcoin’s circulating supply was in profit at the cycle peak. Following the recent correction, however, more than 8 million BTC are now underwater.
“Today, that figure has fallen sharply as over 8M BTC sit underwater, highlighting the scale of the recent market reset.”
Investor sentiment remains deeply negative despite Bitcoin’s rebound from intraday lows. The Crypto Fear & Greed Index rose slightly to 10 from 8 a day earlier but remained firmly in the “Extreme Fear” zone, underscoring persistent concerns over macroeconomic uncertainty, ETF outflows, and escalating geopolitical risks.
With institutional demand weakening, leverage being unwound, and geopolitical tensions adding another layer of uncertainty, traders are closely watching whether Bitcoin can hold above key support levels in the days ahead.
A sustained break below the recent intraday low of $60,892 could expose the psychologically important $60,000 level, while Wintermute’s identified liquidity gap between $50,000 and $59,000 suggests downside risks could accelerate if sellers regain control.
Below that zone, the next major support area sits near $50,000, a level that could attract renewed buying interest after the recent market reset.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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