Cryptocurrency markets experienced significant volatility as Bitcoin and Ethereum prices dropped sharply following escalating Middle East tensions and a major options expiry event. Bitcoin fell 5% to dip below $103,000, while Ethereum plunged 11% to $2,450.
The downturn coincided with renewed geopolitical friction between Israel and Iran, alongside the expiration of $3 billion in Bitcoin options contracts. This combination triggered widespread bearish sentiment across digital asset markets, with Binance reporting a net taker volume of -$197 million.
Altcoins mirrored the decline, with Solana (SOL), Dogecoin, and XRP all posting losses. The global cryptocurrency market capitalization decreased by 2.71% to $3.27 trillion. Ethereum trading volume surged 36% during the sell-off, indicating heightened market activity.
Market sentiment shifted to neutral on the Fear & Greed Index, reflecting investor caution. Some traders view the pullback as a potential strategic entry point, though analysts warn Bitcoin could retest the $100,000 support level if geopolitical instability continues.
Despite short-term pressures, historical patterns suggest cryptocurrencies may demonstrate resilience. Previous recoveries following similar geopolitical and derivatives-related events indicate potential for long-term price stabilization once immediate uncertainties subside.