Nearly $1 billion in leveraged crypto positions were wiped out as geopolitical tensions spurred a broad risk-off move in digital assets.
Bitcoin fell below $73,000 for the first time in months after US airstrikes on an Iranian military site near the Strait of Hormuz reignited geopolitical tensions. The move triggered a $1 billion liquidation event in crypto markets, with long positions accounting for 93 percent of the losses.
Leveraged traders faced heavy losses, with $958.8 million in total liquidations over 24 hours. Bitcoin and ether led the declines, recording $386 million and $246 million in liquidations, respectively. Most major cryptocurrencies dropped 3% to 4%, though Tron (TRX) remained slightly positive for the week.
The strikes reversed recent optimism around a potential cease-fire, pushing global stocks lower and oil prices higher. Risk assets broadly sold off as traders reassessed geopolitical risks in the Middle East.