Oil shocks and sanctions risks add volatility across markets.
In the latest crypto news, fresh U.S. and Israeli strikes on Iranian targets over the weekend have raised fears of a Bitcoin sell-off as conflict threatens Iran’s mining network. The attacks in the Middle East come amid escalating tensions involving the United States, Israel, and Iran. Traders reacted after reports linked potential infrastructure damage to Tehran’s state-backed crypto operations.
Crypto News: Iran’s Bitcoin Mining Backbone
As per the Haaretz report, Iran legalized Bitcoin mining in 2019. Authorities allowed licensed operators to use subsidized electricity. In return, miners sold their Bitcoin to the central bank for trade settlements.
Iran built a financial channel around crypto. Bitcoin has helped pay for imports and bypass dollar restrictions. According to the report, the country generated billions in foreign currency each year through mining.
Estimates suggest Iran controls between 2% and 5% of the global Bitcoin hash rate. Some reports, however, place the figure near 15% of global production. This share makes the country a visible player in network security.
Moreover, reports link many mining operations to the Islamic Revolutionary Guard Corps. Data shows IRGC-connected wallets handled over $3 billion in inflows in 2025. That activity formed part of a wider $7.8 billion crypto ecosystem.
Power Grid Threats and Market Volatility
The latest strikes during the U.S. -Iran war has shifted attention to Iran’s power grid. Mining farms depend on a steady electricity supply. Any disruption could halt operations or damage equipment.
According to data cited in recent coverage, the Iranian state mines Bitcoin at roughly $1,300 per coin. It then sells at market prices. Therefore, shutdowns could disrupt this revenue stream.
Meanwhile, broader crypto markets reacted quickly. Bitcoin dropped as much as 7% to around $63,000 after the first strike reports. It later recovered and traded at $67,209.22, up 3.6% in 24 hours. Bitcoin’s market capitalization is at $1.34 trillion, also up by 3.6%. Trading volume reached $40.23 billion, rising 1.05%.
Sanctions, Stablecoins, and War-Driven Liquidity Fears
Iran’s crypto structure extends beyond mining. Stablecoins are key in trade flows. As Coingape reported, Iran’s central bank accumulated at least $507 million in USDT in 2025.
Authorities likely used those holdings to steady the rial and finance imports. However, data shows the rial has lost more than 96% of its value against the U.S. dollar.
As conflict intensifies, traders now assess liquidation risks. If mining output drops, operators may sell reserves to cover losses. That scenario fuels sell-off fears across exchanges.
Meanwhile, oil price rises add pressure to the market. Potential disruptions in the Strait of Hormuz raise inflation concerns. Risk-sensitive assets, including crypto, often react sharply to such developments.
Market behavior has followed a familiar pattern during conflicts. First comes a flash drop of 5% to 15%. Next, stabilization emerges over days or weeks. Finally, prices often recover after panic selling subsides.
