Overview
A sudden airstrike by the U.S. on Iran’s nuclear facilities resulted in a significant downturn in the cryptocurrency market, leading to the liquidation of long positions worth $595 million.
Key Points
- The military action targeting crucial uranium enrichment sites was publicly announced by former President Donald Trump and has incited widespread market volatility.
- This turmoil in the markets led to 172,853 traders facing liquidation, primarily affecting Ether (ETH) and Bitcoin (BTC) positions.
Details
Following the strikes on critical sites such as Fordow, Natanz, and Isfahan, the crypto market faced a dramatic selloff. Liquidation happens when an exchange forcibly closes a trader’s position due to inadequate funds to maintain their leverage.
Many traders, predominantly in long positions, found themselves victims of the fallout. In total, about 87% of the $681.8 million liquidated came from long positions, with ETH traders suffering losses of $282 million and BTC traders facing around $151 million.
Notably, exchanges like Bybit and Binance constituted two-thirds of the liquidations. As geopolitical tensions heighten, traders are bracing for further volatility.
Market Reaction
Prices initially fell heavily but managed to stabilize around $102,000 for Bitcoin and just above $2,280 for Ethereum. However, expectations of even more significant military action from the U.S. keep the crypto traders on edge.
