President Trump's announcement of a military operation in Iran led to Bitcoin dropping below $100K to $99,822, with over $636 million in crypto liquidations affecting 166,000 traders.
Geopolitical tensions often fuel volatility in traditional assets and cryptocurrencies like Bitcoin and Ethereum.
Solana dropped over 5% to $121, and Ethereum fell to $2,201 amid escalating war tensions.
Trump's confirmation of successful airstrikes in Iran triggered fear-driven reactions among traders, causing sharp losses in Bitcoin, Ethereum, Solana, and XRP.
The crypto market downturn commenced when Trump celebrated the airstrikes on Truth Social, aligning with U.S. military involvement suspicions in Israel's attacks on Iran.
Crypto sensitivity to geopolitical tensions was evident as Ethereum dropped to $2,201, XRP fell 3.1% to $1.80, and Solana crashed over 5% to $121.
Israel claimed to have killed Quds Force commander Saeed Izadi in an airstrike, adding to market uncertainties.
CoinGlass recorded $676 million in liquidations within 24 hours, with heightened panic selling and long positions being wiped out.
Safe-haven assets like gold and the U.S. dollar surged as investors sought stability during the market turmoil.
Trump's remarks and Israel's actions exacerbated fears of an extended regional conflict, impacting sentiment about digital assets.
The market volatility reflects concerns over potential further drops if tensions in the Middle East intensify.
Traders are warned about potential price swings as geopolitical events continue to unfold.
Such events showcase the interconnectedness between global politics and cryptocurrency market fluctuations.
Investors are closely monitoring developments and reacting to news from political leaders and military actions.
The situation underscores the importance of staying informed about geopolitical events for cryptocurrency trading decisions.