Bitcoin sinks below $75K with $945M in leveraged bets crushed as Trump weighs Iran strikes

Crypto markets extended their losses overnight after Bitcoin dropped under $76,000 on Friday and later touched $74,300 Saturday morning amid growing concerns over possible renewed US military action against Iran despite continuing backchannel talks.

Sources told CBS News that no final decision had been made Friday, but preparations were underway across parts of the US military and intelligence community. Some officials reportedly canceled Memorial Day weekend plans amid concerns about a possible escalation.

President Trump also changed his own schedule, canceling plans to attend Donald Trump Jr.’s wedding this weekend and returning to the White House.

The developments come as the US and Iran hold fragile negotiations following a temporary ceasefire reached in early April.

The White House says President Trump is firm that Iran must never obtain a nuclear weapon or keep enriched uranium. Officials have warned that all military options are on the table if Tehran refuses the latest American proposal.

Iran’s Revolutionary Guard responded with threats of severe retaliation, saying future strikes by the US or Israel could widen the conflict beyond the Middle East. A new U.S. proposal was delivered Wednesday through intermediaries, including Pakistan, which has been helping facilitate communication between both sides.

Pakistan and Qatar are racing to broker a last-minute deal, but negotiators describe the process as agonizing, with drafts going back and forth daily without progress.

Geopolitical uncertainty drove investors out of risk assets, pulling Bitcoin, Ethereum, and the major altcoins sharply lower. The total crypto market cap fell 3% to $2.5 trillion in the last 24 hours, per CoinGecko.

The market downturn triggered widespread liquidations in leveraged positions, with about $945 million wiped out, CoinGlass data shows. Much of the damage came from leveraged long positions as traders were caught off guard by the sudden shift in sentiment.

Fears of a wider conflict have also stoked concern over Strait of Hormuz disruptions, a scenario that could send oil prices surging and complicate the inflation outlook.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.