The Crypto Market Takes a Hit: Liquidations Soar Amid U.S. Strikes on Iran
In Brief
- Crypto prices plummeted on Sunday following U.S. military actions against Iranian nuclear facilities.
- Ethereum led the market drop, shedding 7.4% in value.
- Prediction market Myriad reflected bearish sentiment, with over 70% anticipating Ethereum to close the year below $2,000.
This Sunday morning, the crypto market suffered a significant blow, with more than $600 million in long positions liquidated in the wake of U.S. strikes on Iranian nuclear sites. Overall liquidations surged past $701 million, primarily driven by $618.69 million in long positions.
According to CoinGecko, the total market capitalization for cryptocurrencies plummeted to $3.25 trillion, reflecting a 4.4% decline in just one day.
Cryptocurrency Liquidations Breakdown
In the last 24 hours, long positions for Ethereum accounted for $296 million of liquidations, while Bitcoin saw $152 million in liquidations, mostly from long positions as well.
Top Cryptocurrencies React
Among the top 20 cryptocurrencies, Ethereum took the hardest hit, down 7.4% and trading at $2,260. Cardano followed closely, down 7.1%. Meanwhile, Bitcoin remained relatively stable, dipping only 1.4% to $102,418.
Market Sentiment Shifts Towards Bearish
On prediction market platform Myriad, sentiment turned notably bearish towards Ethereum. The “Moon to $3000 or dip to $2000” market revealed a drastic shift from an even playing field to over 70% expecting Ethereum to drop below $2,000 by year-end. (Disclaimer: Invest wisely; predictions are speculative).
Geopolitical Tensions and Their Impact on Crypto
In a recent statement via Truth Social, President Donald Trump declared that the U.S. had executed “very successful” strikes on three Iranian nuclear sites, causing widespread concerns in both the crypto and global markets. Sources, including U.S. Defense Department officials, revealed that B-2 bombers targeted Iran’s fortified uranium facility at Fordo, while submarine-launched Tomahawk missiles struck at Natanz and Isfahan.
This military intervention marks a pivotal escalation in ongoing tensions with Iran. Notably, Israeli officials indicated that they were coordinating closely with the U.S. in planning these operations, causing analysts to speculate on the potential implications for global markets, including cryptocurrencies.
Retaliation and Market Projections
In response, Iran’s Foreign Minister, Abbas Araghchi, warned of “everlasting consequences” and reaffirmed the country’s resolve to defend its sovereignty. Prediction markets on platforms like Polymarket indicate a growing likelihood of Iran closing the Strait of Hormuz, with odds rising sharply following the military actions.
As the situation unfolds, experts note that the outlook for direct military conflict remains low, with predictors estimating just a 2% chance of the U.S. officially declaring war on Iran before July.
Edited by Sebastian Sinclair
