The cryptocurrency market nosedived over the weekend as the US attacks Iran nuclear sites in a coordinated strike with Israel, sending investors scrambling for safety. Bitcoin plunged below $103,000, while major altcoins like Ethereum and Solana saw double-digit losses amid fears of escalating Middle East conflict.
US attacks Iran nuclear sites in pre-dawn strikes
President Donald Trump ordered targeted bombings on three Iranian nuclear facilities early Sunday, declaring the mission had “completely obliterated” enrichment capabilities. As the US attacks Iran nuclear sites operation, it has become the most direct escalation since Israel’s missile exchanges with Tehran began last month. Iran’s Supreme Leader vowed retaliation, raising concerns of a prolonged regional war.
Global markets reacted instantly. According to the New York Times, Brent crude oil surged 4%, while safe-haven assets like gold and the US dollar spiked. Cryptocurrencies, often sensitive to geopolitical shocks, bore the brunt of the sell-off.
Crypto bloodbath: $682 million liquidated as panic spreads
Within hours of the US attacks Iran nuclear sites, the total crypto market cap dropped 1.65% to $3.15 trillion. Liquidations skyrocketed 38% to $682 million, with leveraged traders caught off guard.
Top losers (24 hours):
Bitcoin (BTC): $102,666 (-2.4%)
Ethereum (ETH): $2,273 (-9.7%)
Solana (SOL): $133 (-8.7%)
Dogecoin (DOGE): $0.155 (-10.8%)
“Markets are pricing in worst-case scenarios: oil disruptions, inflation spikes, and delayed Fed rate cuts,” said Hanain Malik, Tellimer’s emerging markets strategist, in a Bloomberg interview.
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Why crypto markets are collapsing
The US attacks Iran nuclear sites strike triggered a classic risk-off reaction:
Flight to safety: Investors dumped volatile assets for stablecoins, bonds, and commodities.
Fed policy uncertainty: Higher energy costs could force the central bank to postpone rate cuts—a bearish signal for crypto.
Historical parallels are stark. Bitcoin dropped 20% during Russia’s Ukraine invasion in 2022 and 50% in the COVID crash. This time, the US attacks Iran nuclear sites adds a nuclear dimension to market anxiety.
Iran’s retaliation could decide crypto’s next move
Analysts warn the crisis could worsen if Iran strikes back. “The US attacks Iran nuclear sites was a calculated gamble,” said a Pentagon insider. “If Tehran targets oil shipments or US bases, we’re looking at $150 oil and another crypto leg down.”
Meanwhile, the Fed’s hands are tied. Last week’s decision to hold rates at 4.25–4.5% already disappointed traders betting on dovish policies. Now, with the US attacks Iran nuclear sites disrupting supply chains, rate cuts in 2025 seem unlikely.
Long-term outlook: A buying opportunity?
While the US attacks Iran nuclear sites caused short-term chaos, some investors see dips as entry points. “Bitcoin rebounded after every geopolitical shock since 2020,” noted CoinShares’ James Butterfill. “This could repeat if tensions de-escalate.”
Sunderland-born crypto enthusiast, cycling fanatic, and wordsmith. As co-founder and lead editor of The Bit Gazette, Mark combines his passion for blockchain with a knack for breaking down complex stories into engaging content. When he's not tracking the latest crypto trends, you'll find him on two wheels—exploring backroads or clocking miles on his favorite cycling routes. Dedicated to delivering sharp, insightful journalism in the fast-moving world of digital assets.
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