Crypto Market Crashes 17% After U.S. Airstrikes on Iran

In a sudden turn of events, the U.S. military conducted airstrikes on Iran’s key nuclear sites, leading to a significant market-wide crypto crash. The strikes, announced by Donald Trump, targeted Fordow, Natanz, and Isfahan, three of Iran’s main uranium enrichment facilities. This geopolitical shockwave sent global markets into turmoil and triggered a sharp selloff in the crypto market.

The impact was immediate and severe. Over 172,000 traders were liquidated, resulting in a total loss of $681.8 million. Of this amount, $595 million was from long positions, indicating that bullish bets were particularly hard hit. Ether (ETH) traders suffered the most significant losses, with $282 million in liquidations, followed by Bitcoin (BTC) traders who faced $151 million in losses. Other major cryptocurrencies, including SOL, XRP, and DOGE, also experienced heavy losses, with at least $22 million in liquidations.

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position, failing to have sufficient funds to keep the trade open. A cascade of liquidations often indicates market extremes, where a price reversal could be imminent as market sentiment overshoots in one direction.

Prices briefly plunged before stabilizing. Bitcoin held near $102,000, while Ethereum traded just above $2,280, both down intraday but avoiding a freefall. The exchanges Bybit and Binance accounted for two-thirds of all liquidations. With the U.S. threatening “far greater” strikes, traders are likely bracing for more volatility in the coming days.