The price of Bitcoin has dipped below $73,000 for the first time in months, following U.S. airstrikes on Iran that spurred a significant sell-off in cryptocurrencies and other risk assets.

Crypto assets experienced a 3% to 4% decline, resulting in nearly $1 billion in leveraged positions being liquidated after U.S. military action reignited concerns in the market.

By Shaurya Malwa May 28, 2026, 4:25 a.m. 2 min read

Key Highlights:

  • Bitcoin's value dropped below $73,000 in response to U.S. airstrikes on Iran, causing a widespread sell-off across cryptocurrencies and other risk assets.
  • In just 24 hours, nearly $1 billion in leveraged crypto positions were liquidated, with long positions accounting for 93% of the losses, primarily affecting Bitcoin and Ether.
  • The military strikes near the Strait of Hormuz, coupled with new U.S. sanctions on Iran and escalating regional tensions, reversed the earlier optimism for a ceasefire, leading to lower global stock prices and rising oil prices.

Bitcoin fell to $72,978 during Asian trading hours on Thursday, reflecting a 3.4% decline over the previous 24 hours and a 6.3% drop over the past week, according to CoinDesk data. It had reached a low of $72,912. Ether (ETH) dropped 4.2% to $1,976, falling below the $2,000 mark, and is down 7.7% over the past week. Other cryptocurrencies such as Solana (SOL) decreased by 3.5% to $80.57, XRP fell 3.6% to $1.28, and Dogecoin declined by 3.2% to $0.0979.

Hyperliquid (HYPE) was the only major cryptocurrency to maintain a weekly gain, down 4.5% on the day but still up 2.4% over the week. Tron (TRX) also recorded a 1.9% weekly gain despite the overall market downturn.

The liquidation event was significant, with CoinGlass reporting a total of $958.8 million in liquidations across 167,706 traders within 24 hours. Of this, $897 million came from long positions and $61 million from short positions. Bitcoin liquidations accounted for $386 million, while ether saw $246 million in liquidations, including the largest single liquidation order of $15.34 million for a BTC position on Hyperliquid.

The high percentage of long positions in this nearly billion-dollar liquidation demonstrates how traders were positioned for a market recovery, only to find themselves on the wrong side when prices fell. The leverage that had built up during mid-May was cleared in a single trading session.

The situation was triggered by the Middle East developments. U.S. Central Command conducted airstrikes on an Iranian military site near the Strait of Hormuz, reportedly shooting down four Iranian drones aimed at a commercial vessel. A U.S. official labeled the strikes as defensive, aimed at preserving the ceasefire established the previous month.

The U.S. Treasury also imposed new sanctions on Iran's Persian Gulf Strait Authority, accusing it of extorting ships passing through the strait. In retaliation, Iran allegedly targeted the U.S. airbase from where the strikes originated, according to reports from the Islamic Revolutionary Guard Corps.

Kuwait announced its response to missile and drone threats, with its military advising that explosions heard in the country were due to air defense systems intercepting incoming targets.

President Donald Trump emphasized that no single country would control the Strait of Hormuz, stating, "It's international waters," during a cabinet meeting at the White House. He assured that the strait would remain open to all, adding that the U.S. would "watch over it."

Risk assets experienced a broad downturn. The MSCI All Country World Index fell by 0.4% from its recent peak, while a measure of Asian shares dropped by 1.7%. Futures for both the S&P 500 and Nasdaq 100 pointed to lower openings. Meanwhile, oil prices surged as the military strikes clouded the prospects for reopening the strait.

This reaction illustrates how quickly the earlier ceasefire optimism unraveled. Despite several weeks of headlines related to Iran, Bitcoin had managed to stay above $74,000, even as ETF demand waned. However, the recent strikes broke that support level, and the rapid pace of the liquidation event indicates that traders were caught off guard.