Bitcoin Plunges Below $73K as US Iran Strikes Spark $1B Liquidations
Bitcoin (BTC) plunged below $73,000 on May 28 after U.S. airstrikes on an Iranian military site triggered a broad cryptocurrency sell-off, wiping nearly $1 billion in leveraged positions across the market. Cryptocurrency majors fell 3% to 4% within hours of the strikes.
The move pushed Bitcoin to its lowest price in five weeks. It marks the sharpest single-session liquidation event since early April 2026.
What Happened
CoinDesk reported that the sell-off accelerated as news of the strikes broke early Wednesday morning.
Bitcoin traded near $72,936 at the time of the largest liquidation wave. Ethereum (ETH) fell through the $2,000 level, touching $1,977. Ethereum had not traded below $2,000 since late March 2026.
Perpetual futures, derivatives contracts with no expiration date that traders use to take leveraged long or short positions on cryptocurrency prices, accounted for the bulk of the $1 billion in forced closures.
Long positions, bets that prices would rise, were the primary casualty as prices moved sharply against holders.
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Background
Bitcoin had been trading under pressure ahead of the strikes. Spot Bitcoin ETFs recorded a net outflow of $733.4 million on May 27, according to data from Farside Investors, with the iShares Bitcoin Trust accounting for a large share of those redemptions.
That outflow represented one of the largest single-day Bitcoin ETF net redemption figures of 2026. Ethereum ETFs saw an additional $67.1 million in outflows on the same day.
The Strait of Hormuz, the narrow waterway through which roughly 20% of global oil supply transits, had already been a focus of energy market concern in the days before the airstrikes.
Oil prices moved higher on reports of fresh U.S. military action, adding macro pressure to risk assets broadly.
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What Comes Next
Bitcoin’s $73,000 level had served as a key support zone cited by technical analysts for most of May 2026. A sustained close below that price would open the next significant support region near $69,000 to $70,000.
Macro conditions remain the primary variable. Any de-escalation of the U.S.-Iran conflict or reopening of the Strait of Hormuz could stabilize risk appetite.
The next U.S. inflation reading, the April PCE data, is due later on May 28 and may compound or offset the geopolitical shock depending on the print.
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