Crypto Markets Rattle as Geopolitical Tensions Between Israel and Iran Spark $1.16B in Liquidations

The crypto market is reeling after Israel launched a major aerial assault on Iranian targets early Friday morning, triggering a wave of panic across digital asset exchanges. The heightened tension sent shockwaves through the market, wiping out more than $1.16 billion in leveraged positions, with altcoins bearing the brunt of the sell-off.

Ethereum tumbled 7.8% to $2,533, while Solana sank 8.4% to $145 and XRP fell 3.9% to $2.13. The only signs of resilience came from dollar-pegged stablecoins—typically a red flag indicating investors are fleeing to safety.

According to data from CoinGlass, Bitcoin saw the largest single-asset liquidations, totaling $449.95 million, followed by Ethereum with $301.92 million and Solana at $53.46 million. Notably, the bulk of the losses came from long positions, suggesting traders were caught off-guard by the geopolitical shock.

The airstrike, which Israeli officials say targeted Iranian nuclear infrastructure and military assets, marks a major escalation in regional hostilities. Iranian state media confirmed multiple fatalities, including both civilians and senior figures in the country’s defense sector.

Iranian President Masoud Pezeshkian issued a stark warning on social media: “The Zionist regime will regret its action today,” and called for an emergency strategy session to plan a formal response. Anticipating retaliation, Israel declared a national state of emergency, preparing for possible missile or drone attacks from Iran.

Beyond its immediate financial impact, the attack may jeopardize long-stalled efforts to revive a U.S.-Iran nuclear agreement. In the aftermath of the strikes, U.S. Secretary of State Marco Rubio quickly distanced Washington from the incident, stating the U.S. was “not involved” and cautioning Iran against targeting American personnel.

Despite its reputation as a safe haven, Bitcoin also dipped 2.2% to $104,976, proving that even the most established digital assets aren't immune to global conflict.

As tensions mount, investors are watching closely to see whether Iran's promised retaliation materializes—and how much further crypto prices could fall in the days ahead.