A sharp downturn struck cryptocurrency markets as escalating Middle East conflicts and renewed U.S. trade tariff threats sparked widespread panic selling. Bitcoin tumbled to an intraday low of $102,000 amid the sell-off, dragging major digital assets down and triggering over $1.2 billion in liquidations across leveraged positions within 24 hours.
The crisis intensified following Israeli airstrikes on Iranian targets, compounded by broader trade policy uncertainties from Washington. Concurrently, a massive $3.7 billion Bitcoin and Ethereum options expiry on Deribit amplified volatility, with market skew indicating bearish sentiment as contracts neared expiration.
Technical supports crumbled as Bitcoin breached the critical $106,000 level, accelerating the decline through cascading liquidations. Large-scale whale transactions further pressured prices downward, reflecting heightened institutional unease during the turmoil.
Despite White House denials of involvement in Middle Eastern military actions, traditional markets mirrored the uncertainty with notable spikes in oil and gold prices. This flight to haven assets underscored cross-market contagion effects that deepened cryptocurrency losses across the board.