Overview
Bitcoin extended its losses on Tuesday, slipping 1.4% to $63,305.0 by 18:04 ET (22:04 GMT) as risk sentiment was hit by U.S. military action against Iran and a concurrent sell‑off in technology stocks.
Geopolitical Developments
The U.S. launched retaliatory strikes against Iran following reports of attacks on three oil tankers in and around the Strait of Hormuz. U.S. Central Command described the strikes as a response to Iranian aggression against the commercial vessels and revoked a general license that had authorized the production, delivery, and sale of Iranian crude oil. The United Kingdom Maritime Trade Operations (UKMTO) confirmed that two tankers were hit by unknown projectiles and a third by a drone, with no casualties reported, and raised the regional threat level from “substantial” to “severe.” Qatar and Saudi Arabia identified two of the vessels and condemned Iran’s actions. Oil prices reacted sharply, spiking more than 5% on the same day.
Market Impact on Bitcoin and Crypto
The broader cryptocurrency market tracked Bitcoin lower. Ethereum fell 1.8% to $1,773.32, XRP slipped 3.1% to $1.1117, Solana declined 1.8%, Cardano dropped 5.5%, and meme token Dogecoin shed 3.9%.
Technology Stock Reaction
Technology equities also weakened after Samsung Electronics released preliminary fiscal Q1 results and Q2 guidance. Although Samsung projected a record Q2 profit, investors remained uneasy about the rapid rise of artificial‑intelligence‑related trade, contributing to the broader market sell‑off.
ETF Flows
Despite the downturn, institutional demand for Bitcoin remained evident. U.S.-listed spot Bitcoin exchange‑traded funds recorded net inflows of $265.7 million on Monday, up from $221.7 million on July 2, marking a sharp reversal after a week in late June when investors withdrew nearly $2.4 billion from spot Bitcoin funds amid heightened macro‑economic uncertainty and profit‑taking.
Outlook
Market participants are awaiting the Federal Reserve’s minutes, scheduled for Wednesday, for clues on the future interest‑rate trajectory, which could further influence risk sentiment and crypto market dynamics.