Bitcoin Dips on Renewed US Strikes on Iran: Is the Peace Deal Off?

Bitcoin prices slid back below $76,500 on Tuesday morning, down 1.5% from its intraday high of $77,700 on Monday.

The move followed reports that the United States had resumed strikes on Southern Iran, targeting missile sites and boats attempting to place mines.

The strikes were carried out “to protect our troops from threats posed by Iranian forces,” but the military was “using restraint during the ongoing ceasefire,” said US Central Command in a statement.

Deal or No Deal?

Just hours before, President Trump posted on Truth Social that negotiations with Iran are “proceeding nicely.”

Over the weekend, Trump claimed that a deal was “largely negotiated,” leading to hopes that it would be finalized this week.

Crude oil prices, which dipped below $90 for the first time this month on Monday, were back up around 2% as the conflict resumed.

Jeff Mei, chief operations officer at the BTSE exchange, remained optimistic. “We believe that if US attacks on Iran are limited, it’s unlikely that Bitcoin will fall lower than the $70k mark,” he said.

“However, if the conflict looks like it may be sustained over a longer period of time, Bitcoin could very well drop back to the $60k floor reached at the beginning of the conflict.”

Jeff Ko, chief analyst at CoinEx, agreed, telling CryptoPotato on Tuesday that technically, $70,000 remains the “next defended floor for Bitcoin,” while $65,000 would be the “next key stress level” if the macro or geopolitical backdrop deteriorates further.

“That said, I think Bitcoin’s ability to absorb recent macro shocks has actually been quite constructive,” he added.

“The asset has not broken down despite the geopolitical uncertainty, which suggests the market is consolidating rather than entering a full risk-off phase.”

Is BTC About to Fall Further?

Macro trader Jason Pizzino remained bearish, opining on X that Bitcoin looks to be getting ready to test the lows again, like it does every bear market.

“Falling volume, lack of social interest (search volume), and a structure reminiscent of further weakness,” he said.

BTC was trading at $76,480 at the time of writing, with further losses looking imminent.

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