✅ Geopolitical Shock: Crypto Market Loses Billions After US Hits Iran Nuclear Targets
The global crypto market witnessed a sharp decline following reports that the United States launched strikes on Iran’s nuclear facilities. The sudden escalation of geopolitical tensions sent shockwaves across financial markets, with crypto assets suffering significant losses amid widespread risk-off sentiment.
Billions Wiped Out
Within hours of the news breaking, Bitcoin (BTC) plunged by over 9%, falling below key support levels and triggering liquidations worth hundreds of millions of dollars. Ethereum (ETH) followed suit, sliding more than 8%, while altcoins such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) recorded double-digit percentage losses.
The total market capitalization of cryptocurrencies dropped by more than $250 billion in a single day, according to CoinGecko data. Major exchanges experienced heavy trading volumes, with many traders scrambling to exit positions as volatility spiked.
Traditionally seen as a hedge against inflation and fiat currency devaluation, Bitcoin and other cryptocurrencies have increasingly behaved like risk assets during periods of geopolitical uncertainty. The attack on Iran’s nuclear infrastructure raised fears of a wider Middle East conflict, leading investors to flock to safer assets such as gold and US Treasuries.
“Markets hate uncertainty — and this is peak uncertainty,” said a crypto analyst at a leading research firm. “When military action breaks out, traders tend to reduce exposure to high-volatility assets, and crypto is at the top of that list.”
Interestingly, trading volumes in stablecoins like USDT and USDC surged, as investors sought refuge in dollar-pegged assets amid the turmoil. Decentralized finance (DeFi) platforms also saw increased activity, with on-chain data showing a spike in borrowing as traders hedged positions or tried to take advantage of arbitrage opportunities.