Rising Middle East tensions have triggered a brutal selloff across the crypto market. Following Israel’s airstrike on Iran, over $1.15 billion in long positions were liquidated. Investors rushed to safe-haven assets, while risk-on markets collapsed.

Altcoins faced the steepest losses. Ethereum dropped 7.8% to $2,533. Solana plunged 8.4% to $145, while XRP slipped 3.9% to $2.13. Stablecoins maintained their dollar pegs, reflecting panic across volatile assets.

Bitcoin also declined but showed more resilience. The asset fell 2.2% to $104,976. Intraday, it traded below $104,000, raising concerns about a potential retest of the $100,000 level. Analysts now eye $95,000 if selling pressure continues.

Market Turns Bearish as Liquidations Surge

According to CoinGlass, Bitcoin led liquidations at $449.95 million. Ethereum followed at $301.92 million, with Solana at $53.46 million. A majority of these were long positions. Myriad predictors increased their odds of further long liquidations to 55.8%.

In the derivatives market, sentiment shifted sharply. Bitcoin’s open interest dropped 4.18% to $69.81 billion. The OI-weighted funding rate declined to 0.0019% from 0.0082% two days earlier. This fall underscores weakening bullish conviction.

The long-to-short ratio has slipped to 0.9223. This marks a clear tilt toward bearish positions. Meanwhile, short liquidations stood at just $21 million, compared to $422 million in longs.

Geopolitical anxiety has also impacted global markets. S&P 500 futures lost 1.9%. WTI oil jumped 12% to $77 per barrel. Gold spiked past $3,400 an ounce, as investors fled to safe assets.

Iran reported civilian and official casualties. The odds of a nuclear deal with the U.S. have fallen to just 4.7%, according to Myriad. U.S. Secretary of State Marco Rubio clarified that America had no involvement in the strike.

Some market participants expect a rebound. Others believe the upcoming U.S. CPI data may shift sentiment. If inflation cools, traders may regain risk appetite. Traders will watch Bitcoin’s $100,000 support and any signs of a shift in U.S.–Iran dynamics.

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