The cryptocurrency market experienced significant downturns following the US military's active strike on key nuclear sites in Iran, marking a major escalation in the Iran-Israel conflict. This development was announced late Saturday by President Trump, who confirmed the bombing action as the US's first active military involvement in this geopolitical conflict.
The immediate market reaction was marked by widespread liquidations, with altcoins suffering the most. Ethereum (ETH) declined over 5%, falling below the $2,300 threshold for the first time in a month. Cardano (ADA) also faced pressure, nearing a three-month low with a 6% drop on the day. AI-related tokens endured the steepest losses; notably, VIRTUAL and Fetch.ai (FET) each declined by nearly 10%.
Bitcoin (BTC), despite holding above $102,500 at the time, showed vulnerability with technical indicators hinting at a possible drop below the critical psychological level of $100,000 if conflict escalations continue. Analysts from BeInCrypto forecasted a potential 10% decline in Bitcoin’s price contingent on worsening hostilities.
Overall, crypto market liquidations surpassed $670 million as traders and investors reacted to the geopolitical tensions. The market faces heightened uncertainty with President Trump warning that any Iranian retaliation would provoke further US action, potentially deepening the bearish trend in the near term.