Plummeting! Trump claims the US has attacked Iran's nuclear facilities, causing an instant 'earthquake' in the cryptocurrency market! News on June 22 reported that Bitcoin dropped over 12% in 24 hours, falling to a low of $101,500. Mainstream coins like Ethereum and Dogecoin also crashed, with Ethereum hitting around $2,210. Why did this geopolitical storm cause such severe turbulence in the crypto market?

Three major impacts hit the crypto market:

1. Risk-averse sentiment drives selling: Iran, being an active region for cryptocurrency mining and trading, has its nuclear facilities attacked, directly exacerbating the uncertainty in the Middle East situation. Historical data shows that when geopolitical conflicts erupt, cryptocurrencies are often viewed as 'risk assets' rather than safe-haven tools due to their high volatility. For example, in August 2024, when US non-farm data fell short of expectations amidst regional tensions, Bitcoin plummeted 15.74% in a single day, leading to over 290,000 liquidations. This attack similarly triggered panic selling among investors, with some funds shifting towards traditional safe-haven assets like gold and the US dollar, resulting in a sharp decline in liquidity in the crypto market.

2. Uncertainty in Iranian policies: Expectations of tighter Iranian policies are rising. Iran has long relied on cryptocurrencies to cope with international sanctions, and domestic trading platforms play a crucial economic role. The US attack may force the Iranian government to strengthen financial control, or even restrict the use of cryptocurrencies to prevent capital outflow. Previously, Iran had regulated mining and trading activities multiple times in response to external pressure, directly affecting the local market's activity. This uncertainty in policies further undermined investor confidence, especially for projects that are highly dependent on the Iranian market.

3. The double-edged sword of the dollar system: Short-term selling is predominant, but long-term geopolitical crises may create a demand for 'anti-fiat risk.' The current market is more inclined to avoid immediate risks.

The key factors to watch moving forward are: whether the US will expand its actions and how Iran will retaliate, which will directly influence fluctuations in the crypto market. In the short term, the $100,000 support level for Bitcoin has become a focal point, and ordinary investors need to control their positions and stay away from high leverage!

Stay updated on the crypto market dynamics, like and follow to avoid getting lost, and share your thoughts on this wave of plummet!