Market in Panic After Israel Strikes Iran

The cryptocurrency market plunged following reports of an Israeli missile strike on Iran’s nuclear infrastructure. According to CoinMarketCap, total market capitalization dropped 4,34% over 24 hours, falling to $3.24 trillion. Bitcoin lost 3,36%, Ethereum fell by 9,27%, XRP dropped 6,24%, and DOGE declined by 9,31%. The worst performer was Solana, down 9,69% in a single day.

Mass Liquidation of Positions

Liquidations over the past 24 hours exceeded $1.1 billion, with $1.04 billion attributed to long positions. CoinGlass data shows that long liquidations in Bitcoin alone amounted to $422 million, of which $236 million occurred on Binance. Ethereum losses totaled $291 million. In total, nearly 250,000 traders were liquidated, over 90% of whom held long positions.

Altcoins Plummet

Other altcoins also suffered major losses:

• Cardano dropped 8,64% to $0.63.
• Sui fell 10,17% to $2.99.
• Chainlink lost 9,8% in 24 hours, trading at $13.11.
• Avalanche declined 10,37% to $18.89.
• Shiba Inu fell 9,02% to $0.00001164.

Reasons Behind the Market Crash

The catalyst was news that Israel launched a missile attack targeting Iran’s nuclear facilities. According to BBC reports, Iran entered a state of emergency and is preparing for immediate retaliation. Iranian media reported strikes hitting residential areas in Tehran, with civilian casualties.

At the same time, the market reacted to the latest U.S. inflation report, which showed a decline in consumer prices in May. Contrary to expectations, this triggered a wave of profit-taking. The downturn began following the report’s release and accelerated throughout the day, especially amid growing geopolitical concerns.

Market Searches for Stability

Amid surging oil prices (up more than 8%) and gold reaching $3,440 per ounce, investors shifted toward safe-haven assets. Still, some market participants believe this correction could present buying opportunities.

Former hedge fund manager James Lavish called the move into fiat assets a mistake, emphasizing that “the smartest investors will choose Bitcoin — an asset that cannot be devalued.”

Meanwhile, some positive developments came from the U.S.: the SEC rolled back several rules introduced under Gary Gensler’s tenure, and Washington reached trade agreements with Beijing. Both of which supported risk assets. However, these events were overshadowed by the threat of full-scale conflict in the Middle East.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.