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The crypto market lost $240B in value this week as geopolitical risks, whale sell-offs, and liquidations hit Bitcoin, Ethereum, and altcoins
The global cryptocurrency market tanked this week, with total capitalization down 1.26% to $3.21 trillion on June 21. That’s $240 billion erased in 7 days. Bitcoin (BTC) fell to $103,127—2% down for the week. Altcoins suffered even more: Ethereum (ETH) -10% to $2,456, Solana (SOL) -11%.
The downturn is being fueled by geopolitical instability, long-term holders taking profits and leveraged positions getting liquidated.
🪷Geopolitical Fears Spook Investors🪷
The Israel-Iran conflict is the top market fear. Investors are worried about US intervention especially after former President Donald Trump’s warning to Iran regarding nuclear deal negotiations.
This has created a risk-off environment with capital fleeing high volatility assets like cryptocurrencies. As tensions escalated:
🪷⏺️Bitcoin from $108,000 to $103,000 in a week
🪷⏺️Ethereum, Solana, Dogecoin all down over 10%
🪷⏺️Altcoin Index to 22, meaning Bitcoin dominance is increasing
Geopolitical crises always lead to higher volatility in traditional and crypto markets as investors seek safety.
🪷Whales Exit, Liquidations Soar🪷
Adding to the selling pressure, whales are selling to take profits. Glassnode data shows wallets holding BTC for 6-12 months sold over $900 million in Bitcoin. Long term holders (1+ year) sold $1.2 billion in early June—the most this year.
⏺️As prices dropped, leveraged traders got liquidated:
🪷⏺️$503 million in crypto positions liquidated in 24 hours
🪷⏺️134,000 traders affected across major exchanges
🪷⏺️Ethereum $183 million liquidated
🪷⏺️Largest single liquidation $8 million BTC on By bit.
These forced sales accelerated the market decline especially for altcoins which lack the liquidity and stability of Bitcoin.
Altcoins Get Hit
⏺️While Bitcoin’s 2% drop is small, altcoins took the brunt:
🪷⏺️Ethereum -10%
🪷⏺️Solana -11%
🪷⏺️XRP -1.4%
Bitcoin is strong as investors are rotating out of smaller coins into BTC.
Points:
🪷⏺️$240B lost in 7 days
🪷⏺️Both Bitcoin and Ethereum down
🪷⏺️War, profit taking and liquidations are the cause
Market is still vulnerable to external shocks and sentiment will be fragile short term.