Crypto markets decided to take a little dive, and no, it wasn’t due to a bad meme or a dogecoin rally. This time, it was the fallout from three U.S. military strikes on Iran Saturday night that really got things moving (or should I say, crashing?). Altcoins were hit especially hard, which makes you wonder: are they allergic to geopolitical events?
In case you missed it, President Donald Trump was busy making headlines at night, calling the strikes "very successful" while simultaneously dropping hints on Truth Social about possibly supporting regime change in Iran. Because, of course, why wouldn’t you mix crypto with international politics?
Now, if you’re sitting there thinking, “How much damage could this cause to the crypto market?” well, over $1 billion in liquidations happened within 24 hours of the strikes being announced. Most of that was long positions, which, surprise, surprise, didn’t seem to have the best day ever. But let’s not kid ourselves; Coinglass’s numbers probably don’t even cover the full extent of the chaos.
Iran's Response and Market Impact
In response, Iran's parliament decided to spice things up by suggesting the country might close off the Strait of Hormuz, which just happens to be a major chokepoint for global oil trade. And just like that, traders began sweating, anticipating a spike in oil prices come Monday. But let’s be real, even if Iran’s threatened before, actually shutting down the strait seems a bit far-fetched. Still, the market likes drama.
On Sunday, Bitcoin slid below $100,000 for the first time in 45 days. It seems the crypto market just can’t catch a break. Despite a nine-day streak of inflows into U.S. spot Bitcoin ETFs, even the best of them hit a wall. Guess what happens next? We’re looking at a potential end to that streak come Monday, because who doesn’t love a little volatility to kickstart the week?
The GMCI30 index has also dropped nearly 10% in the last week. It’s not the worst, but small caps and AI tokens were completely wrecked, dropping 17% and 20% respectively. I guess not everyone has the fortitude for a good old-fashioned market correction.
I think the crypto market is just a reflection of the chaos in the world right now. You could say it’s a "healthy" reminder that nothing, not even Bitcoin, is safe from external forces. Or maybe it’s just a giant game of whack-a-mole where every time one thing settles, something else pops up. Either way, buckle up for the ride, Monday’s trading might get interesting. You decide how much risk you want to take.
Jordan V.
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