TLDR
- The crypto market experienced over $363 million in liquidations within an hour.
- President Trump denied any peace talk with Iran through a social media post.
- Bitcoin fell by 1.17% and slipped below the $106,000 level during the market drop.
- Ethereum dropped 2.5% and approached the $2,500 support level under selling pressure.
- Altcoins including Solana, Dogecoin, and Cardano, lost more than 3% each.
Tensions rose across global financial markets as the crypto market reacted sharply to developments in the Middle East conflict. U.S. President Donald Trump denied any involvement in Iran-Israel peace talks, triggering immediate selling pressure. As a result, the crypto market faced over $363 million in liquidations, mainly from long positions.
Coinglass data shows $263 million worth of long liquidations occurred during the market downturn. This followed Trump’s Truth Social post dismissing prior peace talk reports as false. Traders responded swiftly, leading to increased volatility and rapid price drops across major cryptocurrencies.
Market sentiment weakened further as fears of expanded geopolitical conflict grew. Reports indicated potential U.S. involvement if hostilities escalate, adding to investor concerns. The crypto market continues to experience rapid fluctuations amid growing uncertainty in the region.
Crypto Market Wavers as Bitcoin Slides Fast
Bitcoin fell 1.17% in the last hour, dropping below the $106,000 level as selling intensified. Trading volumes for Bitcoin spiked 25.88%, reaching $52.8 billion within a short timeframe. This surge in volume reflected panic among long-position holders during the sharp correction.
Analysts observed that heightened geopolitical risks contributed to Bitcoin’s swift decline. The crypto market responded to Trump’s strong denial of mediation efforts in the ongoing Middle East conflict. Bitcoin’s price action mirrored broader concerns around global risk sentiment.
Despite its dominance, Bitcoin showed vulnerability under sustained pressure. The crypto market reflected risk-off behavior as traders awaited more clarity on political developments. Any indication of further escalation may cause additional downside.
Ethereum Slides Toward Key Support
Ethereum recorded a 2.5% decline as the crypto market entered risk-aversion mode. During the recent market reaction, ETH prices moved closer to the $2,500 support level. Increased sell orders triggered sharp downward momentum for Ethereum traders.
The altcoin saw reduced demand due to fears of prolonged instability across macroeconomic and geopolitical fronts. Ethereum’s technical indicators showed growing bearish pressure on key timeframes. Many traders opted for short-term exits amid uncertainty.
Ethereum followed Bitcoin’s lead, yet showed sharper losses due to leveraged liquidations. The crypto market turned defensive, pushing ETH away from recent recovery highs. Broader investor activity now hinges on macroeconomic signals and FOMC outcomes.
Altcoins See Sharper Losses as Risk-Off Prevails
Solana dropped over 3% during the recent selloff, extending the crypto market’s downward trend. The coin faced consistent liquidation pressure as sentiment turned negative. SOL failed to hold recent gains and broke below critical levels.
Dogecoin and Cardano also recorded declines exceeding 3% each during the broader market drop. The crypto market showed uniform weakness as speculative assets came under pressure. HYPE from Hyperliquid also reversed, losing 8% from its all-time high.
The entire altcoin segment reflected panic-driven exits and low buying interest. As the crypto market reacted to rising war threats, speculative coins saw higher liquidation. Any further conflict escalation may prompt another round of losses.
