Bitcoin flat, 3 altcoins dip as US strikes on Iran roil markets

Bitcoin traded near flat while Ethereum, XRP and Dogecoin declined Tuesday after the US struck Iran and revoked its oil sanctions waiver, CoinGecko data show.

"Periods of geopolitical escalation historically create dollar-cost averaging opportunities in Bitcoin," an analyst cited by Benzinga said, referring to the strategy of buying fixed dollar amounts at regular intervals.

US Central Command said it had begun "a series of powerful strikes" against Iran in response to Tehran's attacks on three commercial vessels in the Strait of Hormuz. Washington also revoked a sanctions waiver that allowed Iran to export oil, a US official told the New York Post. The moves follow the June 17 memorandum of understanding between the two countries, which Tehran had interpreted as granting it sole responsibility for managing shipping through the waterway. Iran's state broadcaster reported explosions near the coastal city of Sirik and on Qeshm island, according to Al Jazeera.

The strikes are the second round of US military action against Iran in less than two weeks. On June 26, US warplanes hit Iranian drone storage facilities and coastal radar sites in response to a drone attack on a cargo ship in the Strait of Hormuz.

The Strait of Hormuz handles about one-fifth of global oil transit, and any sustained disruption risks pushing crude prices higher, which historically tightens financial conditions and pressures speculative assets. US negotiators said they "continue to work in good faith towards a final deal," per a US official, leaving room for de-escalation.

The oil waiver revocation is particularly significant for markets. Iran had secured the exemption as part of the MOU, and its removal signals Washington's willingness to escalate economic pressure alongside military action. Higher energy costs act as a tax on risk assets by squeezing consumer spending and corporate margins.

The selloff comes as President Donald Trump attends a NATO summit in Ankara, where he criticized European allies for refusing base access to strike Iran. Ukrainian President Volodymyr Zelensky is also in Ankara for bilateral talks, while Ukraine launched more than 430 drones toward Moscow overnight, according to Russian officials. The simultaneous geopolitical flashpoints — US-Iran and Russia-Ukraine — compound the risk-off environment for digital assets.

For crypto investors, the key question is whether Bitcoin can maintain its relative resilience. The largest cryptocurrency by market cap has historically drawn bids during periods of currency debasement fears, but military escalation tends to trigger broad deleveraging first. Bitcoin's correlation to the Nasdaq 100 has averaged 0.45 over the past year, per Coin Metrics, meaning a sustained equity selloff would likely drag crypto lower before any safe-haven narrative takes hold.

This article is for informational purposes only and does not constitute investment advice.