Guy Fawkes 
In Bitcoin news today, the BTC price is trading at $62,000 on Wednesday after failing to clear the $64,000 resistance level, with fresh US-Iran military exchanges delivering the immediate blow to risk appetite.
The sell-off is not happening in a vacuum; it lands atop a shrinking stablecoin market, and institutional ETF flows are too thin to absorb the pressure.
This fresh conflict between the US and Iran has rocked markets, and any further escalation could test the psychological $60,000 support zone, which, if breached once more, could see the mid-$50,000s revisited.
President Trump has said the Memorandum of Understanding underpinning the ceasefire between the US and Iran is ‘over’.
Trump made the comments at the NATO summit in Turkiye after the US bombed Iran despite promising a pause for Supreme Leader Ali Khamenei’s funeral. pic.twitter.com/1APQBkzonh
— Al Jazeera Breaking News (@AJENews) July 8, 2026
Bitcoin News: What Triggered the Drop from $64,000?
In fresh Bitcoin news, the US military launched a new wave of strikes against Iran on Tuesday following reports of attacks on three oil tankers in the Strait of Hormuz, causing the crypto market to pull back.
Iran’s Islamic Revolutionary Guards Corps (IRGC), the country’s elite paramilitary force, responded by targeting 85 US military sites in Bahrain and Kuwait and downed a US MQ9 drone. The US simultaneously revoked a key concession that had allowed Iran to sell oil in international markets.
These moves directly threaten a fragile interim US-Iran peace agreement. Oil prices surged on fears of supply disruptions through the Strait of Hormuz, and the broader geopolitical risk sent capital fleeing from risk-sensitive assets.
BTC, once again, traded as a high-beta risk asset rather than a crisis hedge, a pattern that has recurred across every major Iran-escalation cycle this year, according to FXStreet analyst Manish Chhetri.
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STABLECOIN MARKET POSTS BIGGEST DROP SINCE TERRA COLLAPSE
The stablecoin market shrank 2.4% ($7.7 billion) to $312 billion in June, marking its biggest monthly decline since the 2022 TerraUSD collapse.
The drop came alongside an 18% fall in Bitcoin and several stablecoin…
— *Walter Bloomberg (@DeItaone) July 7, 2026
The geopolitical shock hit a market already grappling with liquidity problems. According to a post on X by Walter Bloomberg, the stablecoin market contracted by 2.4% or $7.7Bn, to $312Bn in June, marking the largest monthly decline since the 2022 TerraUSD collapse.
Stablecoins function as the crypto market’s dry powder: when their supply shrinks, the pool of capital available to buy dips shrinks with it. June’s contraction coincided with a 20% drop in BTC, and if the trend continues into July, selling pressure intensifies further.
Institutional demand is not filling the gap. SoSoValue data shows spot Bitcoin ETF inflows of just $21.44M on Tuesday, the third consecutive day of positive flows, but a rounding error compared to the weeks of outflows that preceded them. Those flows are not providing meaningful price support, and a reversal back to net outflows would add another leg down.
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Bitcoin Price Prediction: Key Levels to Watch
$BTC dropped below $62,000 after Trump said the US-Iran MOU is over.
If Bitcoin closes a daily candle below $62,000 here, a sweep of $60,000 could happen soon. pic.twitter.com/d86rO2wZnn
— Ted (@TedPillows) July 8, 2026
In other Bitcoin news, the technical structure for BTC is currently bearish, with the cryptocurrency trading below key Exponential Moving Averages (EMAs): the 50-day at $65,577, the 100-day at $69,225, and the 200-day at $75,269, which act as resistance.
The Relative Strength Index (RSI) is around 48, indicating neutral momentum, while the MACD shows diminishing bullish pressure.
Key levels to watch include downside support at $62,000; a break below this could trigger a drop to the yearly low of $57,800. Conversely, BTC needs to reclaim $64,004 for a credible recovery.
Potential scenarios include:
Bull case: Geopolitical tensions ease, allowing BTC to reclaim $64,000 and target the 50-day EMA.
Base case: Continued mild conflict leads BTC to trade between $62,000 and $64,000 without a clear direction.
Bear case: Escalating tensions result in a drop below $62,000, revisiting the yearly low.
Despite short-term bearishness, the long-term outlook remains positive, with low exchange-held BTC supply and long-term holders showing no signs of selling. Market focus is on US-Iran developments and upcoming BTC ETF flow readings to determine BTC’s next moves.
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The post Strikes Across Hormuz Push BTC to $62,000 With $60K Floor at Risk appeared first on 99Bitcoins.
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