Trump’s Iran Warning and Bitcoin Price Decline Sparked Widespread Crypto Liquidations

TLDR

• Over $657 million in total crypto liquidations hit the market in 24 hours
• Long positions took 89% of the damage, with $584 million wiped out
• Ethereum led losses at $256 million, Bitcoin followed at $180 million
• Bitcoin dropped below $77K, extending weekly losses to 5.59%
• Trump’s warning of possible US strikes on Iran pushed markets into risk-off mode

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(SeaPRwire) –   Crypto markets experienced a sharp decline over the past 24 hours as more than $657 million in liquidations swept across the sector. Long traders were most heavily impacted.

According to data from Coinglass, 106,371 accounts were liquidated within a single day. Long positions accounted for $584 million of the total, while short positions lost only $73 million, resulting in a one-sided liquidation event targeting leveraged longs.

Ethereum and Bitcoin Lead the Losses

Ethereum suffered the largest losses among all assets, with $256 million in long positions eliminated. Bitcoin followed with $180 million in liquidations. Together, these two major cryptocurrencies represented approximately two-thirds of the day’s total losses.

The biggest individual liquidation was an ETH/USDT perpetual contract on Bitget valued at $28.49 million.

Bitcoin had been testing the resistance range between $79,000 and $80,000 but failed to break through. When that rejection turned into a drop below $77,000, it triggered a wave of forced liquidations across multiple exchanges.

In just one hour, $526 million in positions were closed. Some estimates suggest that weekend long liquidations surpassed $800 million.

Bitcoin is now down 5.59% for the week. Ethereum fell under $2,120, dropping nearly 10% over seven days. Solana declined 11.22% during the same period to $84.94.

The total cryptocurrency market cap decreased by 0.93% to approximately $2.65 trillion.

Trump’s Iran Warning Added Pressure

The market downturn did not occur in isolation. President Donald Trump signaled potential U.S. military action against Iran, prompting traders to adopt a risk-off stance ahead of the week.

Trump is scheduled to attend a Situation Room meeting on Tuesday to review military options. If tensions escalate further, additional volatility in leveraged crypto positions could be expected.

The Setup Behind the Pain

Bitcoin had recorded nine consecutive days of ETF inflows prior to this pullback, totaling around $2.12 billion. This level of buying typically encourages leveraged traders to enter long positions, anticipating the upward trend would continue.

Spot Bitcoin ETFs attract investors who do not use leverage. That $2.12 billion reflects genuine investment activity, not speculative positions. However, the leveraged traders who followed the momentum were caught off guard when the price reversed.

The near-term support zone now lies between $75,000 and $77,000. Bulls must defend this range. The $79,000 to $80,000 area needs to be reclaimed for momentum to return.

ETF flow data will be closely monitored in the coming days. Nine straight days of inflows fueled the recent rally, and the direction of those flows now may determine what happens next.