The cryptocurrency market has faced significant pressure over the past week, primarily due to increased geopolitical risks. On June 21, the total cryptocurrency market dropped by 1.26% to $3.21 trillion, wiping out nearly $240 billion in value.
Bitcoin led the decline, slipping to a low of $103,127, down 2% in just seven days. Altcoins were hit even harder—Ethereum fell to $2,456, losing 10% in the same period. But what exactly is causing this cryptocurrency market crash? Let's find out!
Israel-Iran war and fears of US involvement
The main cause is the escalating conflict between Israel and Iran. Cryptocurrency investors are now worried that the US may get involved in the war, as Trump has warned Iran against not signing an agreement. As a result, Bitcoin fell from $108,000 to $103,000 in just one week, while Ethereum, Solana, and Dogecoin also dropped over 10%.
Whales are selling off to take profits
Whales are beginning to sell large amounts of Bitcoin and move away from altcoins on exchanges. According to Glassnode data, wallets that have held BTC for the last 6-12 months have sold over $900 million. Even those who have held Bitcoin for over a year have started to withdraw. At the beginning of June, long-term holders realized $1.2 billion in profits, one of the largest profit-taking events this year.
Mass liquidation adds more pressure
As prices fell, many leveraged traders were wiped out. In just the past 24 hours, over $503 million in cryptocurrency positions were liquidated, affecting 134,000 traders.
Most of these losses occurred on Ethereum, which saw $183 million liquidated. The largest loss was recorded by a Bitcoin transaction worth $8 million on the Bybit exchange.
Altcoins are more heavily impacted than Bitcoin
While Bitcoin dropped about 2%, most altcoins fell even more. Ethereum decreased by 10% over the week, Solana dropped over 11%, and XRP lost 1.4%. The Altcoin index has fallen to 22, indicating that Bitcoin is dominating the market.