The crypto market fell sharply today, dropping 2.6% to $2.37 trillion. The selloff came after U.S. President Donald Trump said the U.S. campaign against Iran would enter a “final phase” in the coming weeks.
Bitcoin, the world’s largest cryptocurrency, fell over 4% to around $66,250. Many traders worry it could drop further to $65,000, a key support level. Ethereum also slid, approaching the $2,000 mark. Other major coins like XRP, BNB, Solana, and Dogecoin lost between 2% and 6%.
The drop triggered over $420 million in liquidations on leveraged positions. Long trades bore the brunt, with $255 million wiped out. Bitcoin and Ethereum accounted for about $64 million each in losses.
Market sentiment turned negative, with the Crypto Fear and Greed Index falling five points to 27. Analysts say investors are worried about more volatility ahead.
Trump said the U.S. would target Iranian energy infrastructure if no deal is reached. He also called on Gulf countries to pressure Tehran to give up control of the Strait of Hormuz. Iran demanded a permanent end to the war and compensation for damages.
Oil prices jumped above $100, stoking fears of inflation. Gold and silver also dropped, while Asian stocks fell. Rising oil prices make it less likely that the U.S. Federal Reserve will cut interest rates, putting more pressure on risky assets like crypto.
The market remains on edge as investors watch the situation in the Middle East closely. Traders are bracing for more swings in both crypto and traditional markets.
