Bitcoin and Ethereum faced extreme volatility following Israel’s military operation against Iran, resulting in massive leveraged position liquidations across cryptocurrency markets. The action, codenamed ‘Operation Rising Lion,’ prompted a sharp sell-off that saw Bitcoin decline nearly 5% to $103,000 while Ethereum plummeted 11%.
Over $1.1 billion in leveraged crypto positions were liquidated within 24 hours, underscoring the market’s acute sensitivity to geopolitical instability. The total cryptocurrency market capitalization dropped 5.3% to approximately $3.23 trillion, with altcoins mirroring the downward trend amid broad-based losses.
Analysts highlighted the increasingly pronounced reaction of cryptocurrency markets to geopolitical events, noting leveraged positions remain particularly vulnerable during uncertainty. Major cryptocurrency exchanges have not issued official statements regarding the market disruption, contrasting with previous incidents and leaving investors to navigate volatility without institutional guidance.