Bitcoin drops below $104,000 as $513 million in liquidations rock the market.
The cryptocurrency market turned sharply lower on Tuesday after starting the week in the green, driven by escalating tensions between Israel and Iran.
Bitcoin (BTC) is down 3.7% in the past 24 hours to $103,800, while Ethereum (ETH) decreased by 6.3% to $2,469. XRP dropped by 7% in the past 24 hours to $2.16, and Solana (SOL) plunged 7.2% to $146.
The total cryptocurrency market capitalization decreased by 6% on the day to $3.35 trillion. Leveraged liquidations surged to $513 million during the same period, according to CoinGlass. ETH accounted for $164 million, while BTC followed with $125 million in liquidations. Altcoins contributed to nearly $59 million in liquidations.
U.S. spot BTC exchange-traded funds (ETFs) attracted $412 million in inflows on June 16. Meanwhile, spot ETH ETFs recorded $21 million in inflows, according to SoSoValue data.
Experts say markets are pulling back due to the escalating conflict in the Middle East, as well as the likelihood of U.S. intervention. In a new post on Truth Social, President Trump warned that the U.S.’s patience was “wearing thin” with Iran.
“We know exactly where the so-called ‘Supreme Leader’ is hiding. He is an easy target, but is safe there – We are not going to take him out (kill!), at least not for now,” Trump wrote. “But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin.”
“Although markets started off the week calmer, this current geopolitical conflict has the potential to escalate further,” said Jonathan de Wet, Chief Investment Officer at digital asset trading firm Zerocap. “There are a number of scenarios that could play out here, with Trump’s early departure from the G7 forum indicating the growing likelihood that the U.S. will be compelled to assist.”
De Wet cautioned that, as a result, investors should brace for heightened volatility in the coming weeks. Still, he emphasized that institutional activity remains strong.
“The initial impact of conflict between Israel and Iran saw over $1 billion in crypto liquidations and a wave of risk-off sentiment. Despite this, we are not seeing a substantial institutional dropoff,” de Wet said. “Circle is still pumping after its listing on a relative basis, trading last week’s close at 380 per cent above its IPO price.”
