Bitcoin Price Drops Below $62K as US-Iran Tensions Trigger Crypto Market Selloff

Bitcoin price remained under pressure after renewed geopolitical tensions between the United States and Iran sparked a broad risk-off move across global financial markets. BTC fell 3.17% over the past 24 hours to trade at $61,777, slipping below the key $62,000 level as investors reduced exposure to volatile assets. The broader cryptocurrency market also weakened, with total market capitalization declining 3.08% to $2.13 trillion.

Market sentiment deteriorated after U.S. President Donald Trump declared that the ceasefire with Iran was over and warned of possible additional military strikes, accusing Tehran of violating previous agreements. The remarks fueled concerns over potential disruptions to oil supplies through the Strait of Hormuz, sending oil prices higher and increasing uncertainty across financial markets.

The sharp decline in Bitcoin triggered heavy liquidations in the derivatives market. Data showed that approximately $76.85 million worth of BTC positions were liquidated during the past day, with long positions accounting for $65.01 million. The liquidation imbalance suggests that bullish traders were caught off guard as Bitcoin failed to maintain important support levels.

Despite the selloff, institutional demand for digital assets remained relatively resilient. According to SoSoValue, U.S. spot Bitcoin ETFs recorded $21.435 million in net inflows on July 7, extending their positive streak to three consecutive trading sessions. Spot Ethereum ETFs also attracted $26.925 million in fresh inflows, marking four straight days of positive investment activity despite the broader market weakness.

Market analysts are now closely watching Bitcoin's price action around the $62,000 level. One crypto analyst noted that if BTC closes a daily candle below this key threshold, the price could decline further toward the $60,000 support zone. A decisive recovery above $62,000, however, could ease selling pressure and improve short-term market sentiment.

For now, Bitcoin's near-term direction remains heavily influenced by geopolitical developments and investor confidence. Any escalation in U.S.-Iran tensions or continued strength in oil prices could keep risk assets under pressure, while easing geopolitical concerns may help BTC regain momentum in the coming sessions.