Bitcoin price tumbles after Trump orders military response to Iran
Bitcoin price tumbled on June 9 after U.S. President Donald Trump announced a military response to Iran, triggering a broad risk-off move. Bitcoin hit an intraday low of $60,892 and traded around $61,813 by press time, down about 3% over 24 hours; weekly losses widened to roughly 14%.
Derivatives selling accelerated. CoinGlass data shows total crypto liquidations of $664.86 million in 24 hours, with Bitcoin accounting for about $124.22 million. Open interest slipped 0.25% to $45.13B, suggesting leveraged positions were being unwound.
Market pressure also came from institutions and on-chain stress. SoSoValue data indicates U.S. spot Bitcoin ETF outflows of about $4.4B between May 15 and June 8, underscoring weakening demand. Glassnode estimates more than 8 million BTC are now underwater, reflecting a major “market reset.”
On the macro front, traders rotated into safe havens: gold rose about 1.8% and WTI crude climbed about 3.5%. Equity index futures (S&P 500 and Nasdaq) fell alongside crypto.
Sentiment remains extremely negative. The Crypto Fear & Greed Index edged up to 10 but stayed in the “Extreme Fear” zone. Wintermute warned that insufficient inflows make it hard to confirm a durable Bitcoin bottom, highlighting a liquidity gap around $50,000–$59,000. A sustained break below $60,892 could expose the psychological $60,000 level, with further support risk near $50,000.
Bearish
This news is bearish for crypto traders because the trigger is an immediate geopolitical escalation that drives a broad risk-off move, and the market response shows forced deleveraging. Bitcoin price fell sharply to $60,892 and was accompanied by $664.86M in liquidations and a drop in open interest—typical of downside momentum rather than orderly consolidation.
Historically, when macro shocks combine with weak or withdrawing institutional flows, BTC often struggles to stabilize quickly. The reported ~$4.4B ETF outflows reinforce that spot demand is not stepping in to absorb selling. On-chain stress (over 8M BTC underwater) also increases the probability of additional sell pressure if support breaks.
In the short term, traders will likely focus on whether Bitcoin price can reclaim and hold above $60,892; a failure could accelerate moves toward $60,000 and potentially $50,000, especially given Wintermute’s identified liquidity gap ($50,000–$59,000). In the longer term, a sustained recovery would require ETF inflows to return and derivatives leverage to remain contained; otherwise, the market may stay stuck in “Extreme Fear” with higher volatility.