US launches new strikes against Iran as ceasefire collapses, Bitcoin slides to $61K

The US military launched a fresh wave of strikes against Iranian military targets on July 7, hitting over 80 locations just hours after President Trump declared the interim ceasefire “over.” Bitcoin responded by sliding to the $61,000 to $62,000 range as traders scrambled for exits.

What happened on the ground

US Central Command (CENTCOM) initiated strikes targeting Iranian military assets across more than 80 locations on July 7. By July 8, the operation had escalated further, with approximately 90 targets hit.

The focus was the Strait of Hormuz. Roughly 20% of the world’s oil passes through that narrow waterway on any given day. Targets included Iran’s coastal defenses and naval capabilities. The strikes came in response to Iranian attacks on commercial vessels, according to CENTCOM.

Iran announced plans to retaliate against US-linked sites in Bahrain, Kuwait, and Qatar. The interim ceasefire that had been in place was the product of negotiations dating back to April 2026.

Crypto markets take the hit

Bitcoin’s decline to the $61,000 to $62,000 zone put it firmly in risk-off territory. Ethereum, XRP, and Dogecoin all experienced similar downturns.

The pattern isn’t new. Earlier military strikes against Iran in May 2026 triggered approximately $1 billion in liquidations across crypto markets. The broader crypto market lost an estimated $80 billion in value during that episode.

Surging oil prices are compounding the problem. When energy costs rise sharply, it creates inflationary pressure that tends to push central banks toward tighter monetary policy, away from the rate cuts that crypto bulls have been banking on.

What this means for investors

The immediate risk is another liquidation cascade similar to May’s billion-dollar event. Traders with leveraged positions should be acutely aware that geopolitical headlines can move crypto prices faster than any on-chain metric or technical indicator.

Gold, US Treasuries, and the dollar have all benefited from the risk-off rotation. Both the May strikes and the current escalation have produced immediate selling in crypto, not buying.

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