Crypto Market Crashes as U.S.—Iran Conflict Escalates: Bitcoin Falls Below $100K

The cryptocurrency market experienced a dramatic downturn over the weekend as geopolitical tensions erupted following the U.S. and Israel’s coordinated airstrikes on Iran’s nuclear facilities.

Bitcoin plummeted below the critical $100,000 threshold, and major altcoins followed suit, triggering mass liquidations and sparking fear across risk markets.

Tensions Ignite: U.S. Bombs Iranian Nuclear Sites

On Sunday, June 22, the global geopolitical landscape was rocked after the United States, under orders from former President Donald Trump, joined Israel in launching targeted airstrikes on three Iranian nuclear sites, Fordow, Natanz, and Isfahan.

Trump declared the mission a “complete and total success,” aiming to dismantle Iran’s nuclear enrichment infrastructure. Iran, meanwhile, vowed swift retaliation, deepening fears of a broader Middle East conflict.

According to the New York Times, this military action dramatically escalates tensions in a region already teetering on the brink, prompting immediate shockwaves across financial markets, especially crypto.

Crypto Market Turns Red: Bitcoin Breaks Below $100K

The crypto market reacted instantly to the news. Within hours of the airstrikes, Bitcoin's price crashed by over 4%, falling from a stable $103,000 to as low as $98,971. This marks the first time in over 40 days that BTC traded below the $100K psychological support level.

Key Crypto Price Drops:

Virtuals Protocol, Celestia (TIA), Aptos (APT), and AB were among the hardest-hit altcoins, all losing over 9% in the past 24 hours.

Massive Liquidations and Market Fear

CoinGlass data revealed that total liquidations surged by 38% to over $682 million in a 24-hour span, with $1 billion in total crypto value wiped out across exchanges. Most of the liquidations targeted high-leverage positions in Bitcoin, Ethereum, and Solana.

The fear was palpable. Trading volume in Bitcoin spiked over 33%, indicating that panic selling—not normal trading, was driving the market activity. Altcoin segments such as AI tokens, including FET and VIRTUAL, lost nearly 10%, while Cardano (ADA) approached a three-month low.

Why Did Crypto Crash? Two Core Reasons

1. Risk-Off Sentiment Amid Geopolitical Uncertainty

Historically, major geopolitical events trigger a “risk-off” sentiment in financial markets. Investors flee from volatile, riskier assets—like crypto and equities—and pile into safe-haven assets such as gold, the U.S. dollar, and government bonds.

Hanain Malik of Tellimer told Bloomberg:

“Short-term, markets such as crude oil, stocks, and crypto will pivot on whether Iran retaliates and widens the war in a way that impacts oil supply versus backing down and offering concessions on its nuclear program.”

2. Inflation and Fed Policy Concerns

Oil prices surged following the strikes, with Brent crude and WTI up over 32% from yearly lows. Shipping costs are also climbing, signaling that U.S. consumer inflation could spike again. This would pressure the Federal Reserve to maintain higher interest rates longer than previously expected.

Last week, the Fed kept rates steady at 4.25%–4.50% and hinted at two rate cuts in 2025. But surging oil and inflation fears could derail those plans, which is bearish for crypto, as digital assets tend to perform better in low-rate environments.

Market Outlook: What’s Next?

With Bitcoin hovering just above $99,000 and Ethereum sliding below $2,300, traders are bracing for more volatility in the coming days. Analysts warn that if Iran retaliates, Bitcoin could dip to $95K or even lower.

The next 48 hours are critical. Any signal of an Iranian counterstrike or prolonged conflict could intensify the sell-off. On the flip side, a diplomatic de-escalation could provide temporary relief and possibly trigger a market rebound.

Conclusion

The U.S.-Iran conflict has once again highlighted the vulnerability of crypto markets to macro and geopolitical shocks. As tensions escalate, traders and investors are adopting a cautious stance.

With more than $1 billion wiped out in a day and sentiment turning defensive, the crypto market enters a critical phase.

All eyes are now on Tehran and Washington. The outcome of this standoff may determine whether Bitcoin finds a new floor—or continues its descent below five-digit territory.