Key Highlights
- BTC plummeted under $73,000 following U.S. military strikes on an Iranian facility near the Strait of Hormuz.
- Approximately $958 million in leveraged cryptocurrency positions were wiped out within a 24-hour period, with long positions representing 93% of liquidations.
- BTC dominated liquidations with $386 million, while ETH accounted for $246 million.
- Market analyst Captain Faibik cautioned that losing the $72,000 level could lead to an additional 20–25% decline.
- Risk-on assets across global markets declined, with stock indices in Asia and futures pointing downward.
Bitcoin experienced a significant downturn on Thursday, May 28, 2026, sliding beneath the $73,000 threshold for the first time in several months following airstrikes conducted by U.S. Central Command on Iranian military infrastructure located near the strategically important Strait of Hormuz.
During Asian market hours, BTC reached a session low of $72,912, representing a 3.4% decline over the preceding 24 hours and a 6.3% drop across the previous seven-day period, based on CoinDesk market data.
Cryptocurrency analyst Captain Faibik identified a troubling technical formation, cautioning that Bitcoin appeared to be developing a bearish flag pattern. He emphasized that should bullish traders prove unable to defend the critical $72,000 support threshold, market participants should “be prepared for a potential 20–25% bearish wave.” This warning arrived precisely as the digital asset was testing that crucial support area.
Ether (ETH) declined 4.2% to reach $1,976, surrendering the psychologically significant $2,000 mark. Solana (SOL) retreated 3.5% to $80.57, XRP declined 3.6% to $1.28, and Dogecoin fell 3.2% to $0.0979.
The notable outlier was Hyperliquid (HYPE), which remained the sole major cryptocurrency maintaining a positive weekly performance, retaining a 2.4% gain over the seven-day timeframe despite experiencing a 4.5% single-day decline.
Leveraged Positions Face Near-Billion-Dollar Wipeout
According to CoinGlass analytics, the cryptocurrency market witnessed $958.8 million in total liquidations across a 24-hour window, affecting 167,706 individual traders. Long positions comprised an overwhelming $897 million of that aggregate figure, while short positions accounted for merely $61 million.
Bitcoin-related liquidations topped the list at $386 million, with Ether following closely at $246 million. The largest individual liquidation event involved a $15.34 million BTC position on the Hyperliquid platform.
The heavily lopsided 93% concentration of long positions in this nearly billion-dollar liquidation cascade reveals the extent to which traders had positioned themselves for a market rebound. The substantial leverage accumulated throughout mid-May was effectively eliminated during a single trading session.
Middle East Conflict Drives Market Downturn
The catalyst for this market disruption stemmed from a series of military engagements unfolding in the Middle East region. U.S. Central Command executed strikes against Iranian military installations situated near the Strait of Hormuz while simultaneously intercepting and destroying four Iranian attack drones that had been launched toward a commercial shipping vessel.
The U.S. Treasury Department simultaneously announced additional sanctions targeting Iran’s Persian Gulf Strait Authority, alleging the organization engaged in extortion practices against vessels navigating through the strait.
Iran’s Islamic Revolutionary Guard Corps reported conducting retaliatory operations by launching attacks on a U.S. military airbase located in Kuwait. Kuwaiti authorities subsequently confirmed their armed forces successfully intercepted hostile missile and drone threats.
President Trump addressed the situation during a cabinet meeting, asserting the Strait of Hormuz would maintain its open status. “It’s international waters,” he stated. “The strait’s going to be open to everybody.”
Crude oil prices surged nearly 5% in response to the escalating tensions. Global equity markets similarly retreated, with Asian stock indices declining 1.7% while S&P 500 and Nasdaq 100 futures contracts indicated further losses ahead.
Prediction market platforms showed trader confidence in Bitcoin maintaining levels above $70,000 through May 29 declined from 98% to 94% over the 24-hour period.
Bitcoin had successfully maintained trading levels above $74,000 throughout multiple weeks of Iran-related geopolitical developments preceding Thursday’s military operations. The airstrikes ultimately shattered that price floor.
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