- Bitcoin fell below $73K as Iran conflict fears triggered heavy crypto market selling.
- Over $900M in crypto longs were liquidated after Bitcoin lost its key $75K support.
- Spot Bitcoin ETFs saw $733M in outflows as institutions reduced market exposure.
Bitcoin dropped below the $73,000 level for the first time in months after renewed military tensions between the United States and Iran led to a broad sell-off across crypto markets and other risk assets.
The decline accelerated during early trading hours as leveraged positions across derivatives exchanges were liquidated, while institutional investors continued to pull funds from U.S. spot Bitcoin exchange-traded funds.
Market data from CoinMarketCap showed Bitcoin trading at $73,295 at the time of reporting, down by 3.43% over the past 24 hours. Bitcoin’s market capitalization also fell by 3.43% to approximately $1.46 trillion.
Despite the decline, trading activity increased during the sell-off. Bitcoin’s 24-hour trading volume climbed 21.85% to around $42.55 billion as traders reacted to the sudden market weakness.
Liquidations Accelerate Across Crypto Market
The broader crypto market experienced heavy liquidation pressure after Bitcoin lost support near the $75,000 level. Ethereum also moved lower, breaking below the $2,000 area and adding to selling momentum across major digital assets.
According to CoinGlass data, more than $900 million in crypto positions were liquidated across the derivatives market during the past 24 hours. Most of the losses came from bullish long positions as traders betting on higher prices were forced out of the market.
The forced closures added additional selling pressure to spot markets as exchanges liquidated underwater leveraged trades.
ETF Outflows Continue for Eighth Straight Session
Institutional demand for Bitcoin also weakened during the recent decline. U.S. spot Bitcoin ETFs recorded approximately $733 million in net outflows on Wednesday, marking the largest single-day withdrawal since February.
The withdrawals extended the products’ losing streak to eight consecutive trading sessions. The outflows came as investors reduced exposure to risk assets due to rising geopolitical uncertainty and increased volatility across financial markets.
Middle East Tensions Trigger Risk-Off Sentiment
The market decline followed renewed conflict issues in the Middle East involving the United States and Iran.
According to reports, U.S. Central Command carried out airstrikes on an Iranian military site near the Strait of Hormuz and intercepted four one-way Iranian attack drones targeting a commercial vessel. A U.S. official described the actions as defensive measures aimed at maintaining the ceasefire established last month.
The U.S. Treasury also announced sanctions against Iran’s Persian Gulf Strait Authority, accusing the organization of extorting ships passing through the strategic waterway.
Iran later targeted the American airbase linked to the strikes, according to a report citing the Islamic Revolutionary Guard Corps. Meanwhile, Kuwait said its military responded to hostile missile and drone threats after explosions were heard in the country during air defense interceptions.
President Donald Trump stated during a White House cabinet meeting that no single country would control the Strait of Hormuz, describing it as “international waters” and saying the United States would continue monitoring the route.
Related: US-Iran Escalation Shakes Crypto as Bitcoin ETF Outflows Deepen
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