(qlmbusinessnews.com . Fri 13th Jun, 2025) London, UK —
Middle East Crisis Triggers Massive $1.16 Billion Crypto Liquidation: Insights on Bitcoin's Steepest Fall Since June
Bitcoin Suffers Steepest Fall Since June, Dropping 3.3% to $103,556 Amid Middle East Crisis
In what marks Bitcoin's most significant downturn since June, its value tumbled by 3.3% to rest at $103,556. The sharp decline was initiated by Israeli airstrikes on Iran, sparking a frenzy in the crypto market that led to over $1.16 billion in leveraged positions being wiped out in less than a day.
Tension Escalates with Operation Rising Lion
The sell-off was triggered shortly before the initiation of Israel's Operation Rising Lion, aimed at debilitating Iran's nuclear capability. Prime Minister Benjamin Netanyahu identified key targets within Iran's nuclear development sites, including the prestigious Natanz enrichment facility. The attack not only affected military installations near Tehran and Tabriz but also sent shockwaves through global financial markets, precipitating Bitcoin's decline from a 24-hour peak of $108,500 as investors quickly retreated from volatile assets in response to the escalating conflict in the Middle East.
Crypto Market Faces Over $1 Billion in Liquidations
Data from the crypto market highlights the severity of the panic, with long positions bearing the majority of the financial toll, amounting to $1.16 billion in liquidations. In contrast, short liquidations were significantly less, at just $113.97 million.
The liquidation event saw an explosive start, with $20 million worth of positions being cleared within the first hour, escalating to nearly $1 billion over the course of 12 hours. This rapid unload was chiefly due to algorithmic trading systems and the unwinding of leveraged bets.
Geopolitical Unrest Reveals Market’s Vulnerability
The onset of Israeli military action around 3:30 AM local time in Tehran laid bare the crypto market's susceptible overleverage. Following the announcement of the operation's continuation “for as many days as it takes,” the market struggled to find stable footing amid ongoing uncertainty, reflecting the intricate ties between geopolitical events and market dynamics.
Yet, with tensions mounting, cryptocurrencies have historically been viewed as a “digital gold,” providing stability amidst global uncertainty. Nonetheless, the rapid market downturn, propelled by algorithmic trading systems and an aversion to risk, underscores the fragile sentiment within an already stretched market.
Iran’s immediate retaliation, launching around 100 drones towards Israel and declaring a state of emergency, further exacerbated market fears, prolonging the selling pressure across major cryptocurrencies, affecting not just Bitcoin but also Ethereum, XRP, Solana, and Dogecoin, among others.
Technical Analysis Points to Further Declines
A closer technical examination post-incident indicates the market's sensitivity to external shocks, with Bitcoin’s recent price movements suggesting potential further declines. The cryptocurrency broke crucial support levels, with the next substantial demand zone poised around the $100,000 mark, hinting at the possibility of Bitcoin's value dipping towards $96,000, a roughly 10% drop from its current position, should geopolitical tensions persist or other macroeconomic factors emerge.
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