- Market sentiment sours; conflict in the Middle East escalates, with reports suggesting Iran says it will respond "harshly" against Israel.
- Asian equities and cryptocurrency markets traded in the red on Friday as geopolitical risk intensified.
- CoinGlass data shows that over $1.15 billion in leveraged positions were liquidated across crypto markets in the past 24 hours.
Rising geopolitical tensions in the Middle East have triggered a sharp decline in risk assets, with cryptocurrency markets facing significant losses. The Kobesissi Letter reports suggesting Iran says it will respond "harshly" against Israel. These rising tensions have brought a gloomy market mood for investors, triggering the liquidation of over $1.15 billion in the cryptocurrency market, as well as the Asian equities market, which followed suit as geopolitical risk intensified.
Risk aversion increases as Middle East conflict escalates
The cryptocurrency markets continued to trade in the red on Friday, with Bitcoin (BTC) falling below $103,000 during the early Asian trading session. Major altcoins, such as Ethereum (ETH), Ripple (XRP), and Solana (SOL), among others, followed the downward trend, crashing sharply that day.
The rising conflict in the Middle East fueled this correction. According to the Kobeissi Letter report on Friday, Iran says it will respond "harshly" against Israel and the US following tonight's attacks. These ongoing geopolitical risks have triggered risk-off flows in the market, which do not bode well for riskier assets.
The Asian markets also tumble on this news, as major indexes trade down on Friday, as shown in the graph below. However, safer assets like Gold continue to set new intraday highs, with XAU/USD nearing $3,444 following these headlines.
Asian stock indexes chart.
The effects of rising geopolitical tensions have triggered a wave of liquidation in the cryptocurrency markets. According to the CoinGlass Liquidation Map chart, a total of 249,178 traders were liquidated in the last 24 hours, resulting in a total liquidation value of $1.15 billion. The largest single liquidation order occurred on Binance, involving BTCUSDT, valued at $201.31 million.
Bitcoin saw over $448 million in liquidation, while Ethereum saw $288.40 million. Huge liquidations like this could spark Fear, Uncertainty and Doubt (FUD) among investors and cause a rise in selling pressure, leading to further price declines.
Liquidation Heatmap chart. Source: Coinglass
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Gainers Price Prediction: CRO, ZEC, FLOKI struggle to extend gains after double-digit rise
Layer-1 cryptocurrencies Cronos (CRO) and Zcash (ZEC), alongside the meme coin Floki (FLOKI), recorded a double-digit rise on Tuesday, outpacing the market in 24-hour gains at press time on Wednesday. However, as the crypto gainers reach crucial resistances, momentum wanes, and the struggle to extend gains begins.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC holds ground while ETH and XRP eye further gains
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) present a mixed but optimistic outlook midweek as BTC holds steady while ETH and XRP show signs of renewed bullish momentum. The largest cryptocurrency by market capitalization is stabilizing at a critical support level as traders await a catalyst.
Cronos surges 20% on inclusion in Trump Media's Blue Chip ETF
Crypto.com's native token Cronos (CRO) saw double-digit gains on Tuesday following Trump Media and Technology Group's (DJT) filing with the Securities & Exchange Commission (SEC) to launch a Blue Chip exchange-traded fund (ETF).
Bitcoin volatility drops to third-lowest level since 2012 amid rise in BTC treasury companies
Bitcoin (BTC) trades above $108,000 on Tuesday following a steady decline in its volatility in the first half of the year, marking the third-lowest H1 volatility since 2012. The decline comes despite increased Bitcoin treasury adoption among publicly traded companies, with NYSE-listed Sequans Communications (SQNS) raising $384 million to fund its Bitcoin treasury.
Bitcoin: BTC ends Q2 with 30% gains, Standard Chartered eyes $200K by year-end
Bitcoin (BTC) closed a strong second quarter (Q2), recording nearly 30% in quarterly gains amid rising corporate and institutional demand and bullish market sentiment.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.