Late on July 29, the US military launched airstrikes targeting Iranian sites connected to the Islamic Revolutionary Guard Corps near Bandar Abbas and the nearby islands of Kish and Qeshm. The attacks came after President Donald Trump vowed to hit Iran "very hard," sparking immediate turmoil in crypto markets. Bitcoin fell between 1 and 3 percent as investors moved away from riskier assets.
This latest military action is part of a conflict that began earlier this year, when Iran fired ballistic missiles at US and allied bases, including locations in Jordan. Following these attacks, Trump declared the ceasefire "over" in early July, escalating the situation well before the July strikes actually occurred.
Since February, the conflict has involved coordinated operations with Israel and Saudi-aligned forces, along with daily airstrikes. The ongoing tension continues to spook traders, especially those in cryptocurrencies. Bitcoin's behavior during these events shows a pattern: instead of acting as a safe haven like gold, it tends to drop when geopolitical risks rise. This was evident last year during June 2025 strikes when Bitcoin slid from $107,000 to $103,000, and now again in 2026 with similar percentage declines.
Meanwhile, the US is intensifying financial pressure on Iran beyond the battlefield. In April 2026, Washington froze around $344 million in Iranian-linked crypto assets, signaling it can track and seize digital funds despite concerns they might be used to bypass sanctions.
Looking forward, there are three key factors that could sway crypto markets. First, if Iran responds with missile attacks, expect further sell-offs in risk assets. Second, any move toward diplomatic negotiations could ease tensions and spark a bounce in prices. Third, expanded US sanctions targeting crypto networks might increase regulatory risks and impact market sentiment.
This material is for informational purposes and does not constitute financial advice.
