Bitcoin has fallen below $77,000 to $76,762 after fresh U.S. military strikes on Iranian targets triggered heavy selling across crypto markets. The cryptocurrency dropped through the $78,000 and $77,000 levels as reports of the military operation emerged, extending its decline from an intraday high near $79,166. According to CoinGlass data, roughly $115 million in leveraged long positions across the crypto market were liquidated within one hour of the military action. The U.S. Central Command announced American forces began striking Islamic Revolutionary Guard Corps targets in Iran at 12 p.m. ET on Tuesday, citing recent attempted attacks against commercial vessels in the Strait of Hormuz and U.S. military personnel stationed in the region. Iranian state media reported explosions across several locations including Qeshm Island, Bandar Abbas, and Chabahar, with Iranian officials warning that Tehran had started launching missiles and drones in response.
Friday's market reaction was swift and mechanical, with total liquidations reaching approximately $488 million and long liquidations accounting for 68.6% of the total. Bitcoin longs were liquidated for $138 million, suggesting the market was positioned aggressively before Fed Chair Kevin Warsh's hawkish tone. Warsh delivered a more hawkish assessment than anticipated, noting that core PCE inflation has run at 3.7% over the past 12 months and 4.1% over the past six months, both well above the Fed's 2% target. He stated that current financial conditions are "not restrictive," a direct signal that the Fed sees room to tighten further, saying "We have more work to do." Polymarket's rate-hike probability contract jumped from below 50% to 68% within hours, while market-implied September rate-cut odds fell from roughly 88% to 40%. Market analysts now view the Fed's two-day meeting and the Senate's CLARITY Act vote as critical catalysts, with the S&P 500 serving as a key gauge of investor risk appetite - if stocks roll over, crypto usually follows.
The latest military escalation has significantly impacted oil markets, with Brent crude settling 4.6% higher at $95.70 per barrel Tuesday evening and U.S. West Texas Intermediate rising 5.2% to $90.22. Oil traders were monitoring reports that two tankers had been hit while leaving the strait, with Iranian officials warning that Gulf oil exports could face additional disruption if military and economic pressure continues. The Associated Press reported that Tuesday's action ended roughly a month without direct military exchanges between the two countries. Higher energy prices matter to U.S. crypto investors because a sustained rise in fuel costs can feed into inflation data and influence Federal Reserve policy. U.S. Treasury yields rose during Tuesday's trading, with the 10-year Treasury yield climbing to 4.79%, while the S&P 500 fell to its lowest level since August 4, according to market data. August inflation data and the Federal Reserve's September policy decision could therefore affect Bitcoin's next move, with Bitcoin rebounding after CPI data showed annual U.S. inflation at 3.4% in August.
India ranks first globally with 68 million Bitcoin owners but holds a relatively modest 4.6% ownership rate, placing it 12th among 25 countries by ownership percentage according to analyst Willy Woo's latest data. The same table shows India behind Vietnam at 17%, the United States at 14%, and several other countries including the UAE at 16%, Argentina at 15%, and Turkey at 14%. The gap between India's first-place position by owners and 12th place by rate is primarily a function of population size - a 4.6% rate applied to India's population of roughly 1.4 billion produces a larger absolute number than a 17% rate applied to Vietnam's population of about 100 million. Chainalysis separately ranked India first for the third consecutive year in its 2025 Global Crypto Adoption Index, with the country receiving approximately $338 billion in crypto value between July 2024 and June 2025. Other estimates run higher than Woo's figures, with The Crypto Times placing India at approximately 93.58 million people or 6.55% of the population, while third-party compilations cite roughly 119 million Indian owners at an 8.2% rate.
Bitcoin's decline has placed the asset close to the lower end of the price range established after its August rally, with the $76,500 area being tested by sellers based on current market pricing. A sustained break below that region would remove another support area that previously slowed declines. The $76,500-$77,000 region represents Bitcoin's main immediate support, with the lower 4-hour Bollinger Band and nearby liquidation cluster adding technical importance to that range. For the bullish scenario, Bitcoin must reclaim $77,700-$78,260 and close above $79,050, with a move through $79,500-$80,000 potentially triggering liquidations among short positions and reopening the path toward $81,000-$82,000. CoinGlass's one-week liquidation heatmap shows a growing concentration of leveraged positions just below Bitcoin's current market price, with the nearest liquidity cluster appearing between approximately $76,500-$77,000 and a larger downside pool closer to $76,000. Bitcoin futures open interest stood near $25.3 billion, rising only 0.6%-0.9% over 24 hours, with average funding remaining positive at 0.0066% per eight hours, suggesting leveraged traders remain positioned but bullish exposure is not yet unusually crowded. The pressure has spilled into digital assets too, with investors trimming exposure across both stocks and crypto, as Cramer's investing club raised cash to more than 15%, the highest level in its 25-year history.
