Shortly after U.S. President Donald Trump confirmed that the U.S. military had begun “major combat operations” in Iran, the total crypto market cap shed approximately $128 billion in value. Investors seeking safety fled from volatile assets, leading to over $515 million in liquidations within a 24-hour window, according to data from CoinGlass.
The primary driver behind the current crypto crash is the sudden escalation of geopolitical instability in the Middle East. Historically, Bitcoin has been debated as “digital gold” or a safe-haven asset. However, recent price action suggests that in the face of immediate military conflict, it behaves more like a high-risk growth stock.
Bitcoin ($BTC) fell as much as 6%, dropping to a local low around $63,038. This move wiped out the gains seen earlier in the week when the asset was flirting with the $70,000 mark.
Ethereum ($ETH) followed suit, dropping 4.5% to trade near $1,835. Other major tokens like Solana (SOL) and XRP also saw significant losses as the market entered a state of “Extreme Fear.” For real-time updates on how these assets are performing, you can monitor the latest crypto news.
The market is currently waiting for Iran’s “crushing response,” which state media has already signaled. If the conflict widens to involve neighboring countries or disrupts the Strait of Hormuz, analysts suggest Bitcoin could test the $60,000 support level. Major authority outlets are currently monitoring the military developments which will continue to dictate the crypto market’s direction over the next 48 hours.
