Crypto Market Drops 4% Amid Israel Iran Tensions Solana Leads Losses With 8.4% Decline

Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) experienced significant losses following Israel’s air strikes on Iran’s nuclear and ballistic missile sites, which sent shockwaves through the global markets. The crypto market as a whole saw a 4% decline as a result of the escalating tensions between Israel and Iran. Iran retaliated with drone strikes, with Supreme Leader Ayatollah Ali Khamenei warning that Israel would "pay a very heavy price."

Prime Minister Benjamin Netanyahu announced the launch of Operation Rising Lion, a targeted military operation aimed at neutralizing the Iranian threat to Israel's survival. He emphasized that the operation would continue until the threat was eliminated.

Solana led the losses among the top 10 cryptocurrencies, plummeting by 8.4%, followed closely by Ethereum with a 7.7% drop, and Dogecoin with a 7.6% decline. Bitcoin also tumbled, falling 2.4% to trade at $105,046 as of 4:10 a.m. EST, after hitting an intraday low of $102,822.03 amidst the escalating Middle East tensions.

The Crypto Fear and Greed Index, which measures sentiment in the crypto market, dropped by 10 points over the past 24 hours. This decline indicates that investors are reducing their exposure to riskier assets in response to the heightened geopolitical risks.

Crypto long positions were severely impacted, with total liquidations reaching $1.16 billion over the past 24 hours. Long trades, which are bets on rising prices, accounted for the majority of these liquidations, with around $1.04 billion wiped out. Bitcoin and Ethereum traders were particularly hard hit, with liquidations reaching $46.38 million and $303.50 million, respectively.