President Donald Trump is threatening retaliatory strikes against Iranian infrastructure, ratcheting up a conflict that has already sent shockwaves through both traditional and digital asset markets. The threat comes amid a broader military escalation that saw the US president declare a ceasefire with Iran “over” during a NATO summit in Turkey on July 8.

For crypto investors, the timing is brutal. Bitcoin fell below $62,000 in the immediate aftermath of renewed hostilities, and total cryptocurrency liquidations hit $450 million.

How we got here

The roots of this particular crisis stretch back to February 2026, when Iranian forces declared the Strait of Hormuz “closed.” For context, roughly 20% of the…