Bitcoin and Ethereum have experienced sharp price declines following escalated geopolitical tensions in the Middle East, triggering over $1.1 billion in cryptocurrency liquidations within 24 hours. Market volatility surged as Israeli airstrikes on Iran prompted widespread risk aversion, catching leveraged traders off guard.
Liquidations hit leveraged positions particularly hard, with Bitcoin perpetual contracts accounting for $444 million in losses alone. Long positions comprised the vast majority of wiped-out trades, exposing vulnerabilities in high-risk crypto strategies during abrupt market downturns.
Investors responded by shifting toward conservative approaches, including net outflows from Bitcoin ETFs and heightened interest in stable altcoins. Financial experts emphasize that geopolitical events currently overshadow technical factors in driving near-term cryptocurrency prices, though critical support levels may provide limited respite.