Bitcoin Slides Below $61,000 as Trump Orders Iran Military Response; Risk-Off Hits Crypto

Bitcoin sank to an intraday low of $60,892 on June 9 amid renewed Middle East tensions and a broad shift into safe-haven assets, before rebounding to about $61,813. The token was still down roughly 3% over the past 24 hours, extending its one-week drop to 14%, as risk-off sentiment weighed on higher-volatility markets. Investor anxiety intensified after former President Donald Trump ordered a military response against Iran, fueling concerns about an escalation in regional conflict. Gold prices rose, WTI crude gained 3.5%, and S&P 500 and Nasdaq futures weakened. Crypto markets fell in step with the broader sell-off in risk assets. Derivatives deleveraging added to the downside. CoinGlass data shows total crypto liquidations of $664.86 million over the past 24 hours, including about $124.22 million in Bitcoin-related positions, pointing to a concentrated unwind of highly leveraged trades. Bitcoin open interest slipped to $45.13 billion, down 0.25% from the prior day, signaling continued reductions in leverage and risk exposure. Institutional demand has also softened. SoSoValue data indicates U.S. spot Bitcoin ETFs recorded cumulative net outflows of about $4.4 billion between May 15 and June 8, reflecting weakening institutional risk appetite. Trading firm Wintermute said the market is struggling to establish a durable bottom due to limited new capital, and flagged a notable liquidity gap for Bitcoin between $50,000 and $59,000 that could amplify volatility if key support gives way. On-chain metrics suggest mounting pressure on holders. Glassnode reported that more than 8 million bitcoins are currently "underwater" after the latest pullback. The Crypto Fear & Greed Index has edged up from 8 to 10 but remains in the "extreme fear" zone, indicating sentiment has yet to meaningfully recover.