On July 8, 2026, Bitcoin experienced a sharp drop, reaching approximately $61,700, amid the resumption of hostilities between the US and Iran. President Donald Trump officially announced the end of the ceasefire, triggering a massive sell-off of risk assets.
Market in the Red Zone
Over the past 24 hours, the leading cryptocurrency lost 2% of its value, trading around $62,100. Ethereum followed the leader, declining by 2.4% to $1,700. XRP and Solana suffered more severely, with drops of 4.2% (to $1.08) and 5% (to $77.24), respectively. Traditional markets also reacted negatively: futures on the Nasdaq 100 and S&P 500 fell by 1–1.5%, while WTI crude oil surged over 5% to $74.02 per barrel, indicating a flight of investors to safe-haven assets.
Geopolitical Background
The conflict entered a new phase after overnight US attacks on 80 military targets in Iran, including air defense systems and radar stations. In response, the Islamic Revolutionary Guard Corps (IRGC) struck 85 targets at US bases in Kuwait and Bahrain. The escalation began as early as February 28, and the first ceasefire, signed on April 8 with Pakistan's mediation, was violated by June. The "Islamabad Memorandum" of June 17, which extended the ceasefire regime for 60 days, has been effectively destroyed, although neither side has formally announced its withdrawal.
Key Levels and Forecasts
Traders are closely watching critical thresholds. Analyst Daan Crypto Trades highlighted $67,300 as a level of strength and $62,800 as the 200-week moving average. The lower boundary of the range, in his view, is at $59,860. A consolidation above $64,000 would open the path to $65,800, but current dynamics cast doubt on this scenario. Michaël van de Poppe considers the $61,000 zone as key support: if it holds, a move toward $68,000 remains possible. However, CryptoQuant experts warn of a liquidity trap: funding rates have surged sharply, while spot volumes are declining, indicating the speculative nature of the recent rise to $64,000.
My Expert Opinion: The market is caught between a geopolitical shock and technical overcrowding. As long as BTC holds above $60,700, bulls have a chance for recovery, but without a reduction in tensions in the Middle East and an increase in real demand, the correction could deepen to $58,000. Investors should brace for volatility.