CNBC's MacKenzie Sigalos joins 'Special Report' to report on the latest bitcoin price trends following Washington’s surprise attack against Iranian nuclear sites.

New York

Bitcoin briefly fell below $99,000, marking its lowest level in over a month, after U.S. bombers struck three Iranian nuclear sites. The geopolitical event led to a sharp sell-off across the cryptocurrency market, with Ether, Solana, XRP, and Dogecoin also experiencing significant declines. Over $1 billion in crypto positions were liquidated, largely from bullish long positions, as traders reacted to increased risk and uncertainty.

Market analysts attribute the sell-off to both geopolitical shock and concerns about inflation, particularly if tensions in the region disrupt oil supplies. Institutional demand for Bitcoin ETFs also declined, with inflows flatlining as investors adopted a more cautious approach. The situation remains fluid, with market movements reflecting only the current state of events.

Bitcoin sinks below $99,000 as Iran strikes trigger crypto sell-off

Another asset that we're keeping an eye on is Bitcoin. That was briefly falling below $100,000 for the first time since May. Mackenzie Sagalos is here. She's got more on the move. Hi, Mack. Hey, Morgan. So that's right. Bitcoin was trading below that key $99,000 threshold today, its lowest level in over a month after President Trump confirmed that U.S. bombers struck three of Iran's nuclear sites over the weekend. Now, those strikes sparked a wave of risk aversion across crypto. At its worst point today, Ether was down more than 10%, with Solana, XRP and Dogecoin also sliding, dragging the entire market deep into the red. Digital assets are starting to come off those lows now, but the sell-off reflects part geopolitical shock and part inflation fear. If Iran moves to block the Strait of Hormuz, a critical oil route handling 20% of global supply, JP Morgan is warning that oil could spike to $130 a barrel. Now, one closely followed macro research firm says that that kind of shock could drive U.S. inflation back toward 5%, which is a level that we haven't seen since the Fed was still hiking in early 2023. And that outlook has traders bracing for potentially higher rates again, which is bad news for risk assets like Bitcoin. And the market was clearly overleveraged here at its peak. Coinglass data showed more than $1 billion in crypto positions were liquidated over the past 24 hours, more than 95% coming from bullish long. So right now, Bitcoin is looking less like digital gold and a lot more like just another risk trade. Guys, quickly, McKinsey, because like everything else and I've read a bunch of reports that have come out today, I'm sure that Morgan and you have and Contessa Brewer has and everybody, everybody's guessing right now. I want to make that extremely clear. We're going on what we know, which is potentially this lack of more escalation. But again, the ball's in Tehran's court. We don't know. So everything we're saying about Bitcoin and oil and everything else is just based on what has happened, not what might happen. You're looking at crypto markets, which are the first to really digest this news. And so you saw this surge in trading volume on offshore derivatives exchanges like Bybit and Binance, which is pretty classic. You're seeing a lot of these liquidations of the more bullish positions. And also you had institutional demand really, you know, come down at the end of last week. Monday to Wednesday, institutional flows into the spot Bitcoin ETFs were around one billion dollars collectively. Thursday and Friday, it totally flatlined, which dovetailed with the president saying he needed this two week window to consider what was next with Iran, which reflects the fact that this is really about basic risk aversion going into the weekend and institutions wanting to play it safe.

Israel's military has called up tens of thousands of reservists in preparation for an expected assault on Gaza City, as the Israeli government considered a new proposal for a ceasefire after nearly two years of war.

Jerusalem

Middle East Conflict

Israel calls up 60,000 reservists ahead of Gaza City operation

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Washington

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NATO military chiefs met virtually Wednesday for what was described as a candid discussion about security guarantees the alliance would be willing to provide to Ukraine in an effort to end Russia's war in the region.

Brussels

Ukraine Invasion

NATO chiefs meet virtually about potential Ukraine security guarantees

Israel's military leaders approved the next phase of their ongoing offensive in the territory. The operation will shift focus to Gaza City, targeting areas where Hamas is believed to still be active and where Israeli forces have not yet operated.

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North Carolina

Hurricane Erin forces evacuations on U.S. East Coast

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Hamas has agreed to a ceasefire proposal for Gaza, but mediators are still waiting for an official response from Israel. CBS News contributor Robert Berger has the latest from Jerusalem.

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Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

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Texas Democrats who ended a walkout found themselves shadowed by law enforcement officers to keep them from repeating the protest that stalled Republican efforts to redraw congressional districts and fulfill President Donald Trump's desire to reshape U.S. House maps.

Austin

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Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

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Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

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Forecasters are giving urgent warnings to millions of people who live along the East Coast as Hurricane Erin churns in the Atlantic. The storm will not make direct landfall but is expected to bring dangerous rip currents.

East Coast of the United States

Hurricane Erin to bring dangerous rip currents to U.S. East Coast

Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

Los Angeles

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European leaders who converged on the White House for talks on the Russia-Ukraine war demonstrated a united front regarding Ukraine's security on Monday, underscoring the issue as pivotal for the entire continent, not just Ukraine.

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As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

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President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

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Bolivia's presidential vote headed to an unprecedented runoff after elections Sunday that ended more than two decades of left-wing dominance in the Andean nation but signaled voters' trepidation about a major lurch to the right.

La Paz

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All Air Canada planes were grounded on Monday (August 18) after its 10,000 flight attendants refused a return-to-work mandate from the Canadian government.

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Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

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Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

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Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

Erin expected to bring dangerous conditions to U.S. East Coast

Ahead of his Monday meeting with President Trump, Ukrainian President Volodymry Zelenksyy says his country will not give up any territory to Russia, even as the White House insists potential land swaps will be necessary. Willie James Inman reports.

Kyiv

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Thousands of Israeli protesters demanded a deal to secure the release of hostages still held by Hamas in one of the biggest demonstrations since the war in Gaza began. Debora Patta reports.

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Paris

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International condemnation and pressure from allies have done nothing to stop Israel's plan to displace the people of northern Gaza. Israel on Saturday (August 16) said it is preparing to move Palestinians from combat zones to southern Gaza.

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Thousands of people took to the streets on Sunday in a nationwide strike amid fears further fighting could endanger the 50 hostages believed to still be in Gaza.

Tel Aviv-Yafo

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Russia continues to target Ukrainian cities firing hundreds of missiles and projectiles daily despite ongoing peace efforts, led by the United States. Ukrainian officials say their unwillingness to dial back their offensive reflects their lack of sincere interest in peace.

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