Crypto market update: Bitcoin and Ethereum dip after explosions reported in Tehran

Bitcoin fell to as low as $63,062 before recovering toward the mid-$60,000s after reports of large explosions in Tehran and strikes attributed to the United States and Israel; Ethereum dropped to $1,837 before rebounding to roughly $1,940, according to market data cited in coverage of the events ^[1].

The market reaction produced intense volatility and sizable forced selling: one report put crypto liquidations at more than $515 million, while another outlet estimated panic selling at about $1.8 billion as prices swung on escalating U.S.-Iran strikes and related headlines ^[5][4].

Prices later moved back up — some outlets recorded bitcoin trading near $66,600–$67,000 after the morning plunge — and market commentators framed the intraday drop as a potential short-term ‘bear trap’ rather than a sustained trend ^[3][6].

Traders faced heightened volatility as geopolitical reports drove rapid price swings and partial recoveries; market observers cautioned that headlines, not fundamentals, were the primary driver of the moves on the day ^[1][4][6].