Bitcoin slides below $73,000 amid US-Iran tensions

Bitcoin plunged below $73,000 this week as escalating military clashes between the United States and Iran triggered a sharp selloff across global risk assets. The cryptocurrency traded near $73,000 after touching a low of roughly $72,600, erasing recent gains and resulting in significant losses for leveraged traders.

The downturn followed reports of fresh U.S. military strikes targeting Iranian positions, with Iranian forces reportedly retaliating against U.S. bases in the region. These actions near the strategic Strait of Hormuz reversed a recent period of market optimism that had been building on reports of a potential diplomatic agreement. Officials from both nations had been engaged in negotiations, but U.S. officials denied that any deal was finalized, and the renewed hostilities dampened hopes for a near-term resolution.

The geopolitical escalation triggered a broad flight from risk, sending oil prices higher and traditional stock indices lower. This environment pressured cryptocurrencies, which faced additional selling pressure from sustained institutional outflows. U.S. spot Bitcoin exchange-traded funds recorded approximately $733 million in net outflows in a single...