Bitcoin Drops Below $62K on US-Iran Strikes as Strive Buys 32 BTC, ETFs Bleed $2.6B

Bitcoin News

Bitcoin slipped below $62,000 on Tuesday after the United States launched strikes against Iran, shattering a fragile ceasefire. The escalation followed the downing of a US Apache helicopter over the Strait of Hormuz, prompting US Central Command to confirm what it called proportional self-defense operations beginning around 5 p.m. ET. Risk aversion swept global markets within minutes, pushing investors out of speculative assets and toward traditional safe havens. The leading cryptocurrency fell roughly 2% over 24 hours as gold firmed and oil whipsawed. Iran condemned the operation as a ceasefire violation and warned of retaliation, leaving traders bracing for further volatility across the session.

Despite the sell-off, prominent voices rallied behind the asset. Strive chief executive Matt Cole and former Binance head Changpeng Zhao, known as CZ, publicly dismissed the downturn on Monday, with CZ posting that Bitcoin will not die for a long time and urging followers not to panic. Strive backed the conviction with capital, disclosing the purchase of 32 additional BTC for roughly $2.1 million at an average near $63,911 per coin. Cole argued that mounting sovereign debt and currency debasement make Bitcoin the superior store of value, framing digital credit as the medium of exchange for a long transition away from fiat money.

The optimism arrives during one of Bitcoin's roughest stretches in recent memory, with the asset trading near 50% below its October 2025 record above $126,000, an all-time high that now feels distant. Analysts at brokerage Bernstein pointed to capital rotation into artificial intelligence as a primary driver of weak inflows. Bitcoin investment products have absorbed roughly $12 billion in 2026, a sharp drop from the $60 billion gathered during 2025. Spot Bitcoin ETF products alone have recorded about $2.6 billion in net outflows from a $75 billion asset base this year, with corporate buyers led by Strategy absorbing much of the available supply.

Technical traders flagged $65,000 as the line bulls must reclaim to shift momentum. A double rejection near $64,200 left BTC testing the psychologically critical $60,000 zone, with week-to-date lows printed at the Wall Street open. Analyst Michaël van de Poppe argued that cracking $65,000 would trigger a strong run toward $72,000 to $74,000, noting the level had flipped from former support into stubborn resistance after February's crash. Others compared the current structure to prior bear market cycles, observing that Bitcoin had lost its 50-month exponential moving average and a multi-year triangle support, echoing the 2018 and 2022 breakdowns that preceded deeper declines.

Adding to the pressure, a $36 million exploit hit Humanity Protocol and its H token, the latest in a string of security incidents across decentralized networks in recent weeks. The breach renewed debate over smart-contract risk in DeFi, with Bitcoin proponents seizing on the episode to argue that the original blockchain's simplicity and security leave no second best. The attack contributed to broader caution as crypto markets drifted lower even while global equities rallied, with Nasdaq 100 futures up nearly 1% and oil retreating below $89 a barrel on hopes the Iran conflict might be nearing resolution.

On the enforcement front, a 47-year-old man from the Seattle area was sentenced to five years in prison for laundering proceeds tied to a near-$100 million investment fraud. Prosecutors said Geoffrey Auyeung funneled victim funds into Bitcoin, Ethereum and dollar-backed stablecoins after persuading investors they were financing oil and gas ventures. Between June 2022 and July 2024, his accounts received $97.1 million in deposits, with assets routed through major exchanges before landing on Binance. Authorities noted he continued communicating with co-conspirators for 16 months after his 2024 arrest, channeling illicit fees through his wife's bank accounts.

COINOTAG's proprietary 42-indicator composite scoring engine rates the $61,776 resistance at 80/100, the strongest overhead barrier, built on the confluence of the previous daily close and the R1 pivot, while the $64,207 band scores 73/100 from Fibonacci and point-of-control alignment. On the downside, the $59,131 support earns 79/100, anchored by the Donchian lower bound and a prior swing low. Derivatives data shows a positive 0.0039% funding rate, $11.5 billion in open interest and a 2.13 long/short ratio, with 68% of accounts positioned long despite a deeply oversold RSI of 23.5. With the Fear & Greed Index at 9 in Extreme Fear, a daily close back above $64,200 would revive bulls, while losing $59,131 invalidates the recovery thesis.