Crypto Market Takes a $240 Billion Hit Amid Rising War Fears
The past week hasn’t been kind to cryptocurrency investors. The market shed roughly $240 billion in value, with Bitcoin dropping to $103,127 and altcoins like Ethereum faring even worse—down 10% in just seven days. It’s one of those stretches where everything seems to be moving in the wrong direction, and nobody’s quite sure when it’ll stop.
Part of the problem, at least from what traders are saying, is the growing tension between Israel and Iran. When geopolitical risks spike, risky assets often take a hit. And right now, crypto is getting treated like the riskiest of them all.
Why the Sudden Drop?
It’s not just one thing. The Israel-Iran conflict is a big piece of it, sure. But there’s also the fact that U.S. involvement seems more likely than it did a week ago. Markets hate uncertainty, and right now, there’s plenty of it.
Then there’s the whales—big players who’ve been sitting on Bitcoin for months suddenly cashing out. Glassnode data shows wallets holding BTC for 6–12 months dumped over $900 million recently. Even long-term holders, the ones who usually ride out the dips, have started taking profits. That kind of selling tends to snowball.
Leverage Traders Got Crushed
When prices fall fast, leveraged positions get liquidated even faster. In the last 24 hours alone, $503 million worth of crypto trades were forced to close, hitting 134,000 traders. Ethereum took the worst of it, with $183 million in liquidations. One unlucky Bitcoin trader on Bybit lost $8 million in a single trade.
It’s a brutal reminder that crypto markets don’t move in straight lines. What goes up fast can come down faster, especially when traders are overextended.
Altcoins Took the Brunt
Bitcoin’s 2% drop looks almost mild compared to the rest of the market. Ethereum slid to $2,456, Solana dropped 11%, and even XRP, which usually holds up better, lost 1.4%. The Altcoin Index, which tracks performance against Bitcoin, fell to 22—its lowest point in weeks.
Right now, it feels like investors are fleeing to Bitcoin as the “safer” option in an unstable market. Whether that lasts is anyone’s guess. If the past has taught us anything, it’s that crypto markets can turn on a dime. But for now, caution seems to be the mood of the day.
