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CoinDesk1 min read
Iran missile report sends bitcoin back to $79,000, with ETH, SOL, DOGE sharply lower
TL;DR
Bitcoin fell to $79,074 after reaching a high of $80,594, following reports of missile strikes on a U.S. patrol boat by Iran. Other cryptocurrencies like ETH and SOL also saw declines, while Dogecoin managed to gain slightly.
Key points
- Bitcoin dropped to $79,074 after reaching $80,594
- Iran claimed missiles hit a U.S. patrol boat
- U.S. denied the missile strike report
- Brent crude oil prices rose above $113
- Dogecoin gained 2.3% despite the market decline
Bitcoin dropped to $79,074 in late Asian hours Monday, reversing nearly $1,500 from a $80,594 intraday high that had marked the highest print since January 31.
The pullback came as Iran's Fars news agency claimed two missiles hit a U.S. patrol boat near Jask Island after the vessel allegedly ignored Iranian warnings to leave its territorial waters. Brent crude jumped more than 5% to trade above $113 a barrel before paring the gain.
The U.S. denied the report shortly after and said no American ship had been struck. Oil and equity futures pared their initial moves on the denial, but bitcoin held its decline as traders priced in the fragility of the ceasefire that has held since early April.
Other majors followed bitcoin lower from intraday highs but stayed positive on the day.
Ether traded at $2,341, up 1.2% over 24 hours after touching $2,368 earlier. Solana sat at $84.08, up just 0.2% on the day after starting Monday at $85.14. XRP slipped to $1.40 and BNB to $623. Dogecoin held its gains better than most, up 2.3% on the day to $0.1102 with the weekly print still at 12.1%.
The escalation arrived hours after President Donald Trump announced on Truth Social that the U.S. would begin escorting ships stranded in the Persian Gulf through the Strait of Hormuz starting Monday, an operation dubbed Project Freedom that involves guided-missile destroyers, aircraft, and drones.
Iran responded by announcing it had "redefined the control zone" in Hormuz, extending its claimed maritime borders to Fujairah and signaling that Tehran would regulate shipping traffic in the area regardless of U.S. operations.
Bitcoin had broken $80,000 for the first time since January, with $301 million in shorts liquidated as the move unfolded earlier Monday. The Senate's Clarity Act compromise on stablecoin yield, released Friday, had been adding to the risk-on tone heading into the week.
Whether the U.S. denial holds or fresh confirmations emerge from either side will likely set the tape for the rest of the U.S. session.
Q&A
What caused Bitcoin to drop to $79,000?
Bitcoin's decline to $79,074 was triggered by reports of missile strikes on a U.S. patrol boat by Iran, which raised geopolitical tensions.
How did other cryptocurrencies react to the Bitcoin drop?
Following Bitcoin's drop, Ether and Solana also experienced declines, while Dogecoin managed to increase slightly.
What was the U.S. response to the missile strike report?
The U.S. denied the missile strike report, stating that no American ship had been hit, which influenced market reactions.
