The escalating geopolitical tensions in the Middle East have significantly impacted the cryptocurrency market. The aftermath of U.S. military actions against Iranian nuclear facilities has led to a decrease in market capitalization and unrest among investors.
What Caused the Market Reversal?
According to analytics, the market experienced a rapid liquidation of $657.99 million in 24 hours. Investors who expected rising prices suffered considerable losses, leading to the liquidation of long positions totaling $505.28 million. On the HTX exchange, only in the BTC/USDT trading pair was there a recorded decline of $35.45 million.
How Did Exchanges React?
The highest liquidation was recorded on Bybit at $252.46 million, followed by Binance with $137.57 million and Gate with $96.57 million. Exchanges such as Bitmex, Bitfinex, and CoinEx documented over 90% of liquidated positions as longs, highlighting the sharp drop in expected upward trends seen since June 22.
Current Market Status and Outlook
Despite the decline, the total cryptocurrency market capitalization, having plummeted to a low of $3.04 trillion, has seen a slight recovery to $3.09 trillion. Bitcoin has achieved a dominance level of 64.9%, while Ethereum's share has decreased to 8.7%, indicating waning strength of major Layer 1 protocols. Some altcoins, including Story IP, Four, and Sonic, have garnered attention, displaying gains of 11.35%, 10.39%, and 7.68%, respectively.
The situation underscores the sensitivity of cryptocurrency markets to geopolitical developments and the risks associated with high volatility. Changes in altcoin performance may also indicate a redirection of investor interest amid uncertainty.
