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# Cryptocurrency Market Volatility Last Week Due to Increased Political Risks
## Main Causes of the Decline in the Cryptocurrency Market
The cryptocurrency market has been under heavy pressure last week, mainly due to increasing geopolitical risks. On June 21, the total market capitalization of cryptocurrencies fell to 3.21 trillion USD, losing nearly 240 billion USD in value. Bitcoin led the decline, dropping to a low of 103,127 USD, down 2% within just one week. Other altcoins suffered even greater losses—Ethereum fell to 2,456 USD, losing 10% during this period.
## Market Cap Bottoming Out Due to Political Turmoil Related to Israel-Iran and the United States
The main reason for this decline is the escalating conflict between Israel and Iran. Cryptocurrency investors are concerned about the possibility of the United States intervening in this war, especially after Donald Trump warned Iran about not signing the agreement. This caused Bitcoin to drop from 108,000 USD to 103,000 USD within a week, along with Ethereum, Solana, and Dogecoin all losing more than 10%.
## The 'Goldfish Bears' Retail with Profit-Taking Strategies
The sharks ('goldfish bears') began to sell large volumes of Bitcoin and move altcoins off exchanges. According to Glassnode data, wallets holding BTC for 6–12 months just sold over 900 million USD. HODLers for more than a year have also begun to take profits. In early June, long-term investors benefited about 1.2 billion USD—one of the largest profit-taking events of the year.
## Pressure from Large Liquidation Orders
During the price drop, many leveraged traders were quickly wiped out. In the past 24 hours, over 503 million USD in cryptocurrency positions have been liquidated, affecting 134,000 traders. Ethereum accounted for the majority—183 million USD was stripped from the market in just one day. At Bybit, a Bitcoin trade worth 8 million USD was also frozen.
## Altcoins Suffer More Than Bitcoin
While Bitcoin dropped about 2%, most altcoins suffered even greater losses. Ethereum lost 10% over the week, Solana fell more than 11%, and XRP dropped 1.4%. The altcoin market index has fallen to 22, indicating that Bitcoin still dominates the market.
## Conclusion: The Future of the Cryptocurrency Market
Risks from international politics are distorting investor sentiment, increasing the likelihood of volatility in the cryptocurrency market. Investors need to closely monitor geopolitical developments as well as trends in large capital flows to make sound decisions during turbulent times. The market remains full of potential but requires caution and a stricter risk management strategy.
Source: https://tintucbitcoin.com/why-the-cryptocurrency-market-is-collapsing/
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