Bitcoin fell sharply below the $68,000 mark following renewed geopolitical tensions after US President Donald Trump issued a threat to target Iran’s energy infrastructure.

The drop came after Trump reportedly warned he would “obliterate” Iran’s power facilities, reversing earlier comments in which he suggested de-escalating the situation. The sudden shift in tone unsettled financial markets and triggered a wave of selling across crypto assets.

According to market tracking data cited by the Kobeissi Letter, more than $240 million in leveraged cryptocurrency positions were liquidated within a single hour as traders reacted to the news. The rapid sell-off highlights how sensitive crypto markets remain to geopolitical developments.

Bitcoin’s decline also reflects broader concerns about the impact of potential conflict on global energy and mining activity. Iran is known to be a significant player in Bitcoin mining, benefiting from relatively low energy costs. Any disruption to its power grid could force mining operations offline, reducing network activity and affecting supply dynamics.

Market participants say such volatility is typical during periods of heightened uncertainty. Some analysts and traders note that crypto markets often react sharply to headlines, especially those tied to conflict or major political developments.

Despite the pullback, some investors cautioned against panic selling, arguing that markets may stabilize once geopolitical tensions become clearer. Others expect further volatility until there is a more consistent direction in global political signals.