Bitcoin slid below $73,000 on Thursday after U.S. Central Command airstrikes on an Iranian military site near the Strait of Hormuz reignited the conflict markets had started to price out. The flagship cryptocurrency traded at $72,978 in Asian hours, touching a session low of $72,912, down 3.4% over 24 hours and 6.3% across the past week, according to CoinDesk market data. Ether broke under $2,000 for the first time since March, and nearly $1 billion in leveraged positions were liquidated in 24 hours, with long bets accounting for 93% of the wipeout.
Key takeaways
- Bitcoin fell to $72,912 intraday and ether dropped below $2,000, the lowest level since March.
- Roughly $1 billion in leveraged crypto positions were liquidated, with 93% on the long side.
- U.S. CENTCOM said the strikes near the Strait of Hormuz were defensive after Iran fired one-way attack drones at a commercial ship.
- Spot bitcoin ETFs have shed more than $2 billion in May, while ether ETFs logged $401 million in monthly outflows.
Published: May 28, 2026 09:00 UTC
What happened
U.S. forces conducted strikes on an Iranian military site near the Strait of Hormuz and shot down four one-way Iranian attack drones aimed at a commercial vessel, according to U.S. officials cited by CoinDesk. Officials described the action as defensive and aimed at preserving the regional ceasefire that began last month.
The response in crypto markets was immediate. Bitcoin shed 3.4% in 24 hours. Ether fell about 8% over the trailing week and lost its $2,000 handle. Solana, BNB and XRP also dropped between 3% and 5%, mirroring weakness in global equities and a parallel spike in oil prices.
A liquidation cascade amplified the move. Coinglass data referenced by CoinDesk showed close to $1 billion in leveraged positions wiped out across centralized exchanges in 24 hours, with 93% of the wipeout coming from long traders who had positioned for a ceasefire rally.
Why ETF flows matter here
Spot exchange-traded funds were the second pressure point. A spot ETF is a regulated fund that holds the underlying asset directly and trades on traditional exchanges. U.S. spot bitcoin ETFs have shed more than $2 billion in May, reversing $2.9 billion of April inflows and signaling a sharp rotation out of institutional bitcoin exposure, per Coinglass tracking.
BlackRock’s iShares Bitcoin Trust (IBIT) recorded a $528 million single-day outflow on Wednesday, its second-largest daily redemption since launch. Spot ether ETFs registered $401 million in May outflows, more than wiping out April’s $354 million inflow, and have now bled for 11 consecutive sessions.
Open interest in ether futures hit a record 16 million ETH even as the spot price slid, CoinDesk reported. That divergence, rising leverage with falling price, often points to aggressive short positioning rather than dip-buying.
The Strait of Hormuz overhang
The Strait of Hormuz carries roughly a fifth of seaborne oil. Closure threats and military escalation in the corridor have repeatedly served as the macro switch for risk assets in 2026. Crypto, which had traded as a beta on the recent ceasefire optimism, gave back gains on the same headlines.
The U.S. Treasury also announced fresh sanctions on Iranian entities the same week, deepening the risk-off backdrop. Equity futures slipped and Brent crude rose more than 2%, according to wire reports.
What comes next
Traders are watching three signals over the next 48 hours. First, whether Tehran responds militarily or returns to talks. Second, ETF flows on Thursday and Friday, which will indicate whether institutional outflows accelerate or stabilize. Third, the $70,000 level on bitcoin, which technical analysts at Galaxy Digital and Matrixport have flagged as the next major support if selling continues.
For ether, the line in the sand is the March low near $1,850. A break below that level would mark the deepest drawdown since the 2024 ETF launch cycle and could pressure validators running leveraged restaking strategies on platforms such as EigenLayer.
The Federal Reserve’s June meeting and the U.S. nonfarm payrolls print next Friday will also feed into the macro picture. Until then, geopolitics is in the driver’s seat.
FAQ
Why did bitcoin drop below $73,000?
U.S. Central Command struck an Iranian military site near the Strait of Hormuz and intercepted Iranian drones aimed at a commercial ship. The renewed conflict reversed a ceasefire rally, triggering broad selling across risk assets and roughly $1 billion in crypto liquidations in 24 hours.
How significant are the spot ETF outflows?
U.S. spot bitcoin ETFs have shed more than $2 billion in May, wiping out April’s $2.9 billion of inflows. BlackRock’s IBIT alone logged a $528 million outflow on Wednesday. Ether ETFs have now seen 11 straight sessions of net redemptions, totaling $401 million for the month.
What is the next key level to watch for bitcoin?
Analysts at Galaxy Digital and Matrixport have flagged $70,000 as the next major support level. A close below that line would extend the May correction and likely trigger another round of leveraged long liquidations across centralized derivatives venues.
