The US airstrikes on Iran's nuclear facilities caused a sharp decline in the cryptocurrency market, pushing Bitcoin below the $100,000 mark.
$700 million in liquidations shake the market
Data from major exchanges shows that following the Iran strike, over 172,000 traders were liquidated, with total losses estimated at $681.8 million.
Bitcoin-related liquidations accounted for around $151 million, while Ethereum traders faced even larger losses, nearing $282 million. The selloff pushed Bitcoin to lows near $98,500 before it stabilized just below $100,000 and began to grow again.
Other crypto assets, including SOL, XRP, and DOGE also took a hit, losing over $22 million combined.
Bitcoin’s response to geopolitical risks
Bitcoin's reaction to geopolitical risks is not unprecedented. The October exchange of strikes between Iran and Israel wiped out about $495 million in crypto longs and shorts, sending the BTC price below $62K.
In March 2022, Russia’s invasion of Ukraine triggered just over $242 million in crypto liquidations, as BTC tumbled from $45,000 to $35,000 in several days. However, after the markets absorbed the news, the number one cryptocurrency rebounded 65% within two months.
These patterns highlight Bitcoin’s volatility to global uncertainty and emphasize its long-term resilience to shocks.
Geopolitical turmoils provide investment opportunities
The current geopolitical turmoil coincides with ongoing regulatory developments, including the SEC’s recent policy roadmap and increasing institutional interest in Bitcoin ETFs. These factors add complexity to the market outlook as investors balance risk with opportunities.
The Iran strike clearly demonstrated how geopolitical risk can rapidly impact crypto markets, triggering large-scale liquidations and a BTC price crash. However, historical trends and on-chain signals suggest that Bitcoin’s drops below $100,000 may offer a strategic entry point for long-term investors.
Still, opportunities may be short-lived. At press time, BTC is already trading at $101.7K.
The US airstrike on Iran had a significant impact on the crypto market, pushing Bitcoin below $100,000. Analysis suggests that such situations can present both risks and opportunities for investors.
