Crypto Markets Plunge 7% Amid US Iran Tensions

Crypto markets have experienced significant volatility over the past 24 hours, driven largely by geopolitical events. Bitcoin's price dropped to an intraday low of around $101,000, leading to a substantial increase in liquidated positions. At the time of writing, Bitcoin had recovered slightly to $102,500, but volatility remained high, resulting in $700 million worth of liquidated positions across derivatives markets. This figure represents a more than 55% increase compared to the previous day, highlighting the market's uncertainty.

The turmoil in the crypto markets was primarily driven by the U.S. decision to strike Iran, despite President Donald Trump's earlier statement that he would take two weeks to decide on future actions. This escalation has raised concerns about the potential spread of conflict to other regions, with Bahrain, Kuwait, and Saudi Arabia—all home to U.S. bases—beginning preparations for possible conflict.

The impact of these geopolitical tensions was not limited to Bitcoin. Altcoin markets also experienced significant declines, with Ethereum (ETH) dropping by over 7% and Solana (SOL) down by more than 6%. Other major cryptocurrencies, including Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Sui (SUI), also saw notable decreases as traders moved to derisk their portfolios. The only exception was LEO, which remained relatively stable among the top 50 cryptocurrencies by market capitalization. The worst-performing cryptocurrencies of the day were Aptos (APT), Virtuals Protocol, and Injective (INJ), all of which saw declines ranging from 10% to 13%.

Iran, in response to the U.S. strikes, has prepared missiles and other military equipment for potential strikes on U.S. bases in the Middle East, should the U.S. join Israel's conflict. This preparation further escalates tensions and adds to the overall uncertainty in global markets, including the crypto space. The situation remains fluid, and market participants are closely monitoring developments for any further impact on prices and volatility.