Cryptocurrency markets faced steep declines as escalating Middle East tensions fueled investor panic. Triggered by intensified military actions between Israel and Iran, digital assets experienced sharp sell-offs reflecting heightened risk aversion across financial markets.
Bitcoin plunged 5% to $103,464, while Ethereum led larger altcoin losses with a 10% drop to $2,471. The correction erased approximately $144 billion from global crypto market capitalization within a single trading session, marking one of the year’s most volatile episodes.
Market metrics revealed extreme stress conditions, with crypto futures open interest plunging 9.7% to $142 billion as traders unwound leveraged positions. Liquidations surged 125% to $1.2 billion, indicative of forced selling pressure. Technical indicators signaled oversold territory, with the Relative Strength Index (RSI) hitting 28, even as the Crypto Fear & Greed Index maintained a ‘Greed’ reading of 61 – down 10 points from previous levels.
Traditional markets mirrored crypto declines, with U.S. stock futures falling 1.5%. Investor capital rotated toward safe havens including gold and U.S. Treasuries amid geopolitical uncertainty.
Analysts cautioned that volatility could persist, advising market participants to prioritize risk management strategies and monitor Middle East developments closely. The current pullback underscores cryptocurrencies’ continued sensitivity to macro-geopolitical shocks despite maturation of digital asset markets.