The US-Iran conflict escalates again! Bitcoin falls below 62,000 US dollars, oil prices surge by 6%, and global stock markets weaken.

After the United States and Iran once again attacked each other, and following the latest statement from U.S. President Trump reigniting concerns about the political situation of GEO Group Inc, risk appetite took a hit, causing Bitcoin to sharply decline. At the time of writing, Bitcoin has fallen by more than 2%, below $62,000. Other cryptocurrencies like Ethereum and Solana also dropped simultaneously. Meanwhile, global stock markets continued to fall, with most Asian markets falling on Wednesday and U.S. stock futures dropping before the market opened. Gold futures also fell by over 2%. On July 7th local time, the U.S. Central Command announced in a statement and video that the U.S. military had completed another round of offensive strikes against Iran, using precise guided munitions to hit over 80 targets, in direct response to recent Iranian attacks on commercial vessels sailing in the Strait of Hormuz. The statement specified that the U.S. strikes targeted Iranian air defense systems, command and control networks, coastal radar sites, and anti-ship missile capabilities. Additionally, over 60 small Iranian Islamic Revolutionary Guard Corps vessels were destroyed in the Strait of Hormuz and surrounding waters. The U.S. military stated that Iran had previously attacked three commercial vessels passing through the Strait of Hormuz the Marshall Islands-flagged "Al-Rayakyat" oil tanker, the Saudi Arabian-flagged "Wadiyan" oil tanker, and the Liberian-flagged "Cyprus Prosperity" oil tanker. The U.S. Central Command forces remained on high alert, stating that they would hold Iran accountable if they did not comply with agreements. On July 8th, the Iranian Islamic Revolutionary Guard Corps released a statement accusing the U.S. military of carrying out airstrikes on coastal bases and non-military facilities in the coastal areas of Hormozgan Province and Mahshahr in violation of ceasefire agreements and the Islamic memorandum of understanding. The Iranian Revolutionary Guards claimed to have hit 85 U.S. targets in Bahrain and Kuwait as a response to U.S. violations of the ceasefire. Iran's top military adviser, Rezai, stated that the U.S. was prepared to launch another attack, and Iran was fully prepared to respond. The Iranian Armed Forces' Central Headquarters of Hatam Anbiya declared that they would respond firmly to U.S. attacks and reiterated that under no circumstances would they allow U.S. interference in the management of the Strait of Hormuz. Additionally, on July 8th, President Trump at a NATO summit stated that he believed the U.S.-Iran memorandum of understanding had "ended." Trump reportedly said that he believed the memorandum had "ended" and would inform U.S. negotiators. Trump also stated that he did not want to deal with Iran anymore. As a result of the renewed attacks between the U.S. and Iran and Trump's statements, oil prices rose. As of writing, Brent crude futures surged by nearly 6%, reaching $78.54 per barrel. Caroline Morin, co-founder of Orbit Markets, said, "After Trump's remarks, Bitcoin rapidly declined as the market worried that rising energy prices could trigger a new round of inflation and potentially force central banks to raise interest rates further. We expect Bitcoin to find some support around $61,500, but with the ongoing evolution of the political and macroeconomic situation of GEO Group Inc, the market may continue to experience high volatility." After experiencing nearly 18% drop in June, the worst monthly performance in four years, Bitcoin's trend improved in July, largely unaffected by the news of Strategy (MSTR.US) selling Bitcoin earlier this week. On Monday, Strategy, the world's largest corporate Bitcoin holder, disclosed the sale of $216 million worth of Bitcoin, causing overall stability in the cryptocurrency market. The market barely reacted to this news, a stark contrast to the previous month when Strategy's first sale of Bitcoin since 2022 triggered a significant sell-off in the cryptocurrency market. Furthermore, before the latest escalation in the Middle East situation, some large Bitcoin holders had begun to increase their holdings again. U.S.-listed spot Bitcoin exchange-traded funds (ETFs) saw net inflows for three consecutive trading days, with total inflows exceeding $500 million. In June, investors withdrew over $4.5 billion from these funds, marking the largest monthly outflow since their launch in early 2024.