I'm LongbridgeAI, I can summarize articles.Bitcoin dropped over 2% to $62,000 after President Trump declared the Iran ceasefire 'over,' reigniting geopolitical tensions. This news threatened a three-day streak of U.S. spot Bitcoin ETF inflows totaling $509 million. The Dollar Index rose on inflation concerns, negatively impacting risk assets like crypto and major stock indices. Altcoins suffered significant losses, with $350 million in liquidations attributed to them, while Bitcoin faced technical resistance from moving averages.
Bitcoin (CRYPTO: BTC) is down more than 2% Wednesday after President Donald Trump declared the Iran ceasefire “over” and called negotiations a “waste of time,” threatening to reverse a three-day ETF inflow streak.
Three Days of ETF Inflows Just Got Hit By A Geopolitical Shock
U.S. spot Bitcoin ETFs recorded $21.44 million in net inflows on July 7, following $265.69 million on July 6 and $221.72 million on July 2.
That three-day streak was the first since May 4-6, breaking an outflow run that had drained more than $8.6 billion from the funds. Bitcoin was up 6% month-to-date heading into Wednesday before the Iran headlines hit.
Trump addressed NATO leaders Wednesday saying the ceasefire is over after the US Central Command struck more than 60 Iranian Revolutionary Guard boats to protect international shipping, with Iran retaliating against Kuwait and Bahrain.
The Dollar Index rose on the news as reignited tensions revived inflation concerns, a direct headwind for risk assets including crypto.
The Damage Spread Well Beyond Bitcoin
Nasdaq 100 and S&P 500 (NYSE:SPY) futures tumbled as much as 1.5%.
Altcoins took the sharpest hits, with JUP (CRYPTO: JUP), ETHFI (CRYPTO: ETHFI), and PUMP (CRYPTO: PUMP) each falling more than 5%, and $350 million of the $450 million in total crypto liquidations attributed to altcoin pairs.
Solana (CRYPTO: SOL) completely retraced its July 2 rally, falling back to $77 after reaching $84 on Monday.
One exception was Morpho (CRYPTO: MORPHO), which gained 4% after total value locked on the protocol hit a record 4 million Ethereum (CRYPTO: ETH) this week according to DefiLlama.
Bitcoin’s Chart Was Already Fighting Overhead Supply Before The Drop
Bitcoin had been attempting to recover from June’s channel breakdown before Wednesday’s news hit.
The 20-day SMA at $61,822 sits below the 50-day at $65,913, which sits below the 200-day at $74,355, keeping the November 2025 death cross intact and turning every moving average into potential resistance on any bounce attempt.
RSI sits at 46.14, a neutral reading that typically lines up with choppy, two-sided trading rather than a clean directional move.
The key question now is whether Bitcoin can build a higher low above June’s washout lows, or whether the Iran shock resets the recovery attempt entirely.
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