Bitcoin reclaims $62K after U.S.-Iran strikes; $94M liquidated

Bitcoin reclaimed the $62,000 level on Wednesday after U.S. strikes on Iranian targets, recovering from an intraday low of $60,679. The rebound pushed bitcoin’s market capitalization to about $1.24 trillion and raised the total crypto market value to roughly $2.21 trillion.

The price swing followed an exchange of strikes between U.S. and Iranian forces that began after reports an American Apache attack helicopter had been downed. U.S. Central Command confirmed targeted strikes on several Iranian military objectives. Tehran then struck U.S. military installations in the region. A later post warning of further action contributed to market volatility.

Bitcoin fell steadily during the escalation before dropping to $60,679. It had recovered above $62,000 by 9:39 a.m. EST and was trading slightly above $62,000 at 1:15 p.m. EST. A subsequent buying wave pushed the price to just under $62,800 before it gave back some gains.

Trading activity tied to the swings triggered nearly $94 million in liquidations over a 24-hour period. Short positions accounted for about $61 million of the liquidations, with long positions making up the remainder. The liquidations reflect leveraged exposure in bitcoin derivatives as prices moved quickly on geopolitical headlines and buying flows.

The Bureau of Labor Statistics reported May headline consumer price index inflation rose to 4.2%. Energy costs were responsible for nearly 60% of the monthly increase. The gap between headline CPI and core CPI measured 2.9% in May. The Federal Reserve has a policy meeting scheduled for June 17; the inflation report arrived days before that session. Kevin Warsh has recently been sworn in as Fed chair.

Market participants pointed to the combination of the Middle East escalation and the CPI report as the main drivers of the day’s price swings. Traders and investors remained watchful for further geopolitical developments and the Fed meeting on June 17, both of which market participants expect could influence crypto prices in the near term.