Cryptocurrency markets fell sharply as geopolitical tensions escalated, wiping out leveraged positions worth nearly $1 billion.
Bitcoin dropped below $73,000 as U.S. airstrikes on an Iranian military site near the Strait of Hormuz reignited geopolitical risks. The move sparked a broader sell-off in crypto majors, which fell 3% to 4% in early trading.
Prior to the strikes, markets had begun pricing out conflict risks in the region, with Bitcoin stabilizing above $73,000. The sudden escalation caught traders off guard, leading to mass liquidations of leveraged positions totaling nearly $1 billion.
The sell-off reflects heightened risk aversion as investors reassess exposure to volatile assets amid rising tensions.