Key Takeaways
- BTC slipped under $73,000 following U.S. military strikes on an Iranian installation close to 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 losses.
- BTC dominated liquidation volumes with $386 million, while ETH followed with $246 million.
- Market analyst Captain Faibik cautioned that losing the $72,000 support level could result in an additional 20–25% decline.
- Risk-on assets across the board declined, including global equities and Asian market indices.
Bitcoin experienced a significant selloff on Thursday, May 28, 2026, plunging beneath the $73,000 mark for the first time in several months following U.S. Central Command’s military operation targeting an Iranian facility located near the strategically important Strait of Hormuz.
The cryptocurrency reached an intraday bottom of $72,912 during the Asian session, representing a 3.4% decline over the previous 24 hours and a 6.3% retreat from the prior week, based on information from CoinDesk.
Cryptocurrency technical analyst Captain Faibik identified a troubling formation on the charts, alerting followers that Bitcoin appeared to be developing a bearish flag pattern. He cautioned that should buyers prove unable to defend the critical $72,000 support threshold, market participants should “be prepared for a potential 20–25% bearish wave.” This warning emerged precisely as the asset was testing that vulnerable zone.
Ethereum (ETH) declined 4.2% to settle at $1,976, surrendering the psychologically significant $2,000 threshold. Solana (SOL) retreated 3.5% to $80.57, XRP decreased 3.6% to $1.28, and Dogecoin shed 3.2% to trade at $0.0979.
Hyperliquid (HYPE) stood as the notable outlier, remaining the sole major digital asset maintaining a weekly advance, still showing a 2.4% gain across the seven-day period despite experiencing a 4.5% single-day decline.
Leveraged Traders Face Nearly $1 Billion in Losses
According to CoinGlass tracking data, the cryptocurrency market witnessed $958.8 million in aggregate liquidations throughout the 24-hour window, affecting 167,706 individual traders. Bullish long positions comprised $897 million of that figure, whereas bearish short positions accounted for merely $61 million.
Bitcoin liquidations commanded the highest total at $386 million, with Ethereum registering a substantial $246 million in forced closures. The largest individual liquidation event involved a $15.34 million BTC position executed on the Hyperliquid platform.
The overwhelming 93% bias toward long positions in this near-billion-dollar liquidation event reveals the extent to which traders had positioned themselves anticipating a market rebound. The accumulated leverage that had been established throughout mid-May was effectively eliminated during a single volatile trading session.
Middle East Tensions Catalyze Market Decline
The catalyst for the downturn stemmed from escalating military confrontations in the Middle East region. U.S. Central Command executed strikes against an Iranian military installation situated near the Strait of Hormuz while simultaneously neutralizing four Iranian attack drones that had been launched toward a commercial shipping vessel.
The U.S. Department of the Treasury simultaneously announced fresh sanctions targeting Iran’s Persian Gulf Strait Authority, alleging the organization engaged in extortion schemes against vessels navigating through the strategic waterway.
Iran’s Islamic Revolutionary Guard Corps announced retaliatory measures, claiming to have launched attacks against a U.S. military airbase located in Kuwait. Kuwaiti authorities verified that their defensive systems successfully intercepted hostile missile and unmanned aerial vehicle threats.
President Trump emphasized that the Strait of Hormuz would continue operating without restriction. “It’s international waters,” he stated during a cabinet session. “The strait’s going to be open to everybody.”
Crude oil prices surged approximately 5% responding to the escalating conflict. International equity markets also retreated, with Asian indices posting 1.7% losses while S&P 500 and Nasdaq 100 futures contracts indicated further weakness ahead.
Prediction market platforms revealed that trader confidence in Bitcoin maintaining levels above $70,000 through May 29 deteriorated from 98% to 94% during the 24-hour period.
Bitcoin had successfully defended the $74,000 level throughout multiple weeks of Iran-focused geopolitical developments preceding Thursday’s military operations. The airstrikes ultimately shattered that support foundation.
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