- Crypto markets saw $1B in liquidations as Bitcoin crashed to $99,300 post-U.S. airstrikes.
- Iran’s Strait of Hormuz threat shook markets; oil futures are expected to spike as escalation looms.
- The GMCI30 index dropped 10%, while AI-linked and small-cap tokens plunged 20% and 17%, respectively.
The cryptocurrency market reeled this weekend following U.S. airstrikes on Iranian nuclear facilities. Market volatility surged, with over $1 billion in crypto positions liquidated within 24 hours as per Coinglass data. Long positions were hit hardest, triggering a cascade of liquidations across Bitcoin, Ethereum, and altcoins amid rising geopolitical tensions.
Former President Donald Trump confirmed the strikes late Saturday, declaring them “very successful” and later hinting at a potential regime change in Iran. On his Truth Social platform, Trump stated he could support leadership shifts, escalating concerns across financial markets. Traders began rapidly repositioning portfolios, anticipating broader global instability and heightened risk-off sentiment.
Bitcoin Prices Crash Below $100K
Bitcoin prices sank to $99,300, falling below the six-figure mark for the first time in 45 days. Ethereum also saw steep declines, hitting its lowest price since May. Solana’s SOL dropped 8%, with analysts watching for breakdowns at key support levels amid mounting fears of oil supply disruptions.
According to The Kobeissi Letter, Trump’s “Make Iran Great Again” remarks intensified trader anxiety. Historically, statements fueling geopolitical uncertainty trigger short-term demand for perceived safe havens like Bitcoin. Yet this time, traders opted to cash out, suggesting fear is outweighing crypto’s haven narrative at least temporarily.
Related Reading: Trump’s Iran Strike Triggers Bitcoin Crash Below $100K
Prediction Markets Turn Bearish on Crypto
In response, Iran’s parliament urged leaders to consider closing the Strait of Hormuz, a vital artery for global oil shipments. While Iran has never succeeded in fully closing the strait, the mere threat rattled markets. Oil futures are expected to spike on Monday as global trading desks weigh the likelihood of escalation.
Despite the selloff, trading firms remained active. AguilaTrades reportedly closed a short position in Bitcoin for a $112,000 profit, exemplifying the volatile trading landscape. At the same time, the crypto venture capital flows kept coming, which is a sign of institutional confidence in the market, even though there was a meltdown among the retail investors.
According to prediction markets and sentiment trackers, there has been a growing negative attitude. Traders fuss about the likelihood of Bitcoin going down to the sub-$95,000 area before it could attain a significant recovery. Additionally, inflows into U.S. spot Bitcoin ETFs weakened on Friday, threatening to break a nine-day streak when traditional markets open.
The Block’s GMCI30 index, tracking the top 30 cryptocurrencies, slid nearly 10% over the week. Smaller altcoins fared worse, with small caps and AI-linked tokens plunging 17% and 20%, respectively.
Read More: Shiba Inu (SHIB) Drops to $0.0000103 Amid Crypto Sell-Off and Geopolitical Risks
