Bitcoin drops below $63,000 as US-Iran clash spikes oil

Bitcoin and broader financial markets experienced a sharp selloff on Monday, July 13, as a significant escalation in military hostilities between the United States and Iran rattled investor sentiment. The cryptocurrency fell below $63,000, dropping roughly 2% on the day, while oil prices surged approximately 4% following a series of attacks around the strategic Strait of Hormuz.

The U.S. Central Command announced its fourth round of airstrikes against Iranian targets in six days on July 13, targeting air defense systems, coastal radar sites, and vessels belonging to the Islamic Revolutionary Guard Corps. Iran responded by launching drones and missiles at U.S. military bases across the Gulf region and striking two UAE-flagged oil tankers, the Mombasa and Al Bahiyah, with cruise missiles in Omani waters. The UAE's Ministry of Defence reported one crew member was killed and eight were wounded in that attack. Brent crude oil rose to around $79 a barrel, its highest level since June 22.

The immediate market reaction was a flight from risk assets. Bitcoin touched an intraday low near $62,500 before a partial recovery, while U.S. stock futures also declined. The broader cryptocurrency...