Bitcoin Plummets as US-Iran Conflict Triggers Massive Market Liquidations

The article details the significant downturn in the cryptocurrency market following a surge in geopolitical tensions between the United States and Iran. As military strikes were launched, Bitcoin (BTC) experienced a sharp decline, dropping below the critical $64,000–$65,000 threshold. This volatility triggered a massive liquidation event, with approximately $100 million in long positions wiped out in just 15 minutes.

Market Reaction: The escalation of conflict led to an immediate "risk-off" sentiment among investors. Beyond Bitcoin, major altcoins like Ethereum (ETH), Solana (SOL), and XRP also saw significant losses, with Solana often hitting harder than its peers.

Historical Context: While Bitcoin is often marketed as a "digital gold" or a hedge against global uncertainty, the report notes that it frequently behaves like a high-risk asset during the initial stages of a military conflict. Similar patterns were observed during "Operation Midnight Hammer" in 2025, where prices dipped upon the news of strikes but showed potential for recovery once stability returned.

Macroeconomic Pressures: Analysts warn that a prolonged war could spike oil prices, leading to sustained inflation. This would likely force the Federal Reserve to maintain high interest rates, further draining liquidity from the crypto market and preventing a quick rebound.

Short-term Outlook: Market experts suggest that if bearish momentum continues, Bitcoin could test support levels as low as $53,000. Recovery typically takes 4–6 weeks after such shocks, provided the conflict does not expand into a broader regional war.

The US-Iran conflict has acted as a primary catalyst for a crypto crash, highlighting the market's sensitivity to geopolitical instability and its current dependence on global liquidity trends.

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