Bitcoin slipped back to around $62,000 on Wednesday after the US and Iran exchanged airstrikes and President Donald Trump declared the ceasefire over. The move followed a surge in oil prices above $74 a barrel. Renewed geopolitical tensions weighed on risk assets including cryptocurrencies.
US President Donald Trump said the memorandum of understanding and ceasefire with Iran "is over, as far as I'm concerned," after both sides traded strikes. The US Central Command hit Islamic Revolutionary Guard Corps boats in the Strait of Hormuz, and Iran responded with attacks on targets in Kuwait and Bahrain.
Bitcoin fell more than 2% in the session to trade near $62,000, while ether and other major cryptocurrencies posted similar losses. WTI crude oil futures rose more than 5% to exceed $74 a barrel.
US spot Bitcoin ETFs recorded a third straight day of inflows totaling about $509 million over three sessions, providing some support. However, futures open interest and leverage metrics remained elevated, leaving the market exposed to further volatility.
Analysts at Marex noted that Wednesday's release of Federal Reserve June meeting minutes could act as a catalyst, given crowded long positions in Bitcoin derivatives.
