Crypto Market Faces $1B Liquidations Amid U.S.-Iran Tension

Following U.S. military strikes on Iran, the crypto market took a hit, with altcoins suffering significantly. As international markets prepared to open Monday, volatility was expected. President Trump announced the strikes on Iranian nuclear sites Saturday night and suggested possible support for a regime change. In response, Iran's parliament called for closing the Strait of Hormuz, potentially affecting global oil trade. Within 24 hours post-announcement, over $1 billion in crypto positions were liquidated, majorly impacting long positions, as per Coinglass data. Bitcoin's price dropped below $100,000 for the first time in 45 days, despite recent inflows into U.S. Bitcoin ETFs. This drop indicated a potential cessation of the inflow streak. The Block's GMCI30 index showed a nearly 10% decline in top cryptocurrencies by market cap over the past week. Small-cap and AI tokens were particularly hard hit, dropping 17% and 20%, respectively.