Bitcoin Reclaims $62K as Trump Strikes Iran, Leaving $94M in Trades Wiped Out

Middle East Conflict Escalates Following Helicopter Downing

Bitcoin on Wednesday appeared to shrug off overnight military exchanges between U.S. and Iranian forces, reclaiming the $62,000 level just hours after briefly slipping below $61,000. Market data shows the cryptocurrency had been sliding steadily before plunging to an intraday low of $60,679.

Shortly afterward, bitcoin began rallying, and by 9:39 a.m. EST it had erased earlier losses after climbing back above $62,000. Less than two hours later, another buying wave pushed it to just under $62,800 before it pared most of those gains. As of 1:15 p.m. EST, bitcoin traded slightly above $62,000, up 0.5% on the day.

The rebound lifted bitcoin’s market capitalization to $1.24 trillion, helping push the broader crypto market’s value to $2.21 trillion. The sideways trading also resulted in nearly $94 million in leveraged bitcoin positions being liquidated over 24 hours, with short positions accounting for $61 million and long positions making up the balance.

The sudden market volatility came on the heels of a sharp escalation in the Middle East, triggered by U.S. President Donald Trump’s vow to strike Iran in retaliation for the reported downing of an American Apache attack helicopter. Turning rhetoric into action, U.S. Central Command later confirmed it had launched targeted strikes against several Iranian military objectives. Tehran rapidly struck back, targeting U.S. military installations throughout the region.

While the fierce exchange of fire lasted for several hours and rattled global markets, it stopped short of scuttling ongoing peace talks. However, a subsequent Truth Social post from Trump warning of additional strikes fueled concerns that the two countries were edging toward a broader conflict.

Compounding the geopolitical drag from the Middle East, a fresh wave of macro anxiety hit the crypto market following the latest U.S. inflation report. The Bureau of Labor Statistics reported that headline consumer price index (CPI) inflation climbed to 4.2% in May, with an unyielding energy crunch driving nearly 60% of the monthly advance. Even though the headline metric simply matched market expectations, the real story emerged in the structural gap between headline inflation and core CPI, which stands at 2.9%. This widening chasm illuminated how deeply isolated supply-side energy shocks are rattling risk-off assets like bitcoin.

This latest inflation shock shifts pressure onto the Federal Reserve just days ahead of its June 17 policy meeting, marking a baptism by fire for the newly sworn-in Fed Chair Kevin Warsh. With consumer prices stubbornly high, any remaining odds of a June rate cut have completely evaporated. Instead, the persistent economic friction from the U.S.-Iran conflict—and the distinct lack of a diplomatic breakthrough—has injected fresh volatility into monetary policy forecasts, reigniting once-unthinkable talk of an impending rate hike.

For investors, an extended regime of elevated rates strengthens the appeal of traditional, risk-free yields while dampening the appetite for speculative rotations into digital assets. Consequently, this restrictive monetary backdrop casts a long shadow over the cryptocurrency’s performance trajectory for the rest of 2026, tempering previous bullish forecasts.