The cryptocurrency market recorded significant losses when the US officially joined the Iran-Israel conflict late Saturday night. According to President Trump, the US bombed important nuclear sites in Iran, marking the first US attack in this geopolitical conflict. The cryptocurrency market reacted with substantial liquidations in the altcoin sector. Ethereum dropped over 5% after the news, trading below $2,300 for the first time in a month.
Cardano is also approaching its three-month low after this news – dropping 6% today. AI tokens were hit the hardest, with VIRTUAL and FET declining nearly 10%.
Cryptocurrency market liquidation after the US attack on Iran. Source: Coinglass
Although Bitcoin remains above $102,500, indicators suggest it could drop below the psychological $100,000 level if additional tensions are reported over the weekend.
Previously, BeInCrypto analysts predicted that Bitcoin's price could drop 10% if the US became involved in the Iran-Israel conflict.
Currently, the market will cautiously monitor Iran's response. President Trump has declared that any reaction from Iran will lead to further US actions.
In total, cryptocurrency liquidations have exceeded $670 million today, and further escalation could signal a short-term price decline cycle.
