U.S.–Iran conflict reignites, jolting crypto risk-off

On 2026-06-02, Iran fired missiles at Kuwait and Bahrain and the U.S. retaliated with strikes on a military facility on Qeshm Island, shattering April's fragile ceasefire. The renewed Middle East war sent markets risk-off and helped tip an already-fragile Bitcoin into a cascade — one of four pressures, alongside a hawkish Fed, Strategy's first sale since 2022, and a record ETF-outflow streak, that drove the early-June rout. In the days that followed, BTC slid from the high-$60,000s toward $62,000 as roughly $1.5B in leveraged longs were wiped out.