TL;DR
- A U.S. airstrike on Iran’s uranium facilities triggered a $595 million crypto long liquidation.
- Over 172,000 traders were wiped out, with Ethereum and Bitcoin facing the biggest losses.
- Bitcoin dipped to $102,000 and ETH to $2,280 but avoided deeper crashes.
- Exchanges like Bybit and Binance saw the largest liquidation volumes.
- Ongoing geopolitical threats could cause further crypto market volatility.
U.S. Strikes Shake Global Markets and Crypto Traders
In a dramatic geopolitical escalation, the U.S. military launched coordinated airstrikes on Iran’s uranium enrichment facilities over the weekend. The announcement, made publicly by former President Donald Trump, targeted Iran’s Fordow, Natanz, and Isfahan sites—key nodes in the country’s nuclear development network. The strikes ignited chaos in global financial markets, with crypto assets among the hardest hit.
According to CoinGlass, the incident triggered $595 million in long-position liquidations within 24 hours, primarily across Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies.
Liquidation Cascade Hits 172,000+ Traders
The rapid market downturn led to 172,853 traders getting liquidated, totaling $681.8 million in losses, of which a staggering 87% were bullish long bets. The largest hits came from Ethereum, where traders lost approximately $282 million, followed by Bitcoin at $151 million. Major altcoins such as SOL, XRP, and DOGE each posted $22 million+ in liquidations.
| Liquidations by Asset | Loss (USD) |
| Ethereum (ETH) | $282 million |
| Bitcoin (BTC) | $151 million |
| Solana, XRP, Dogecoin (Altcoins) | $22M+ each |
| Total Liquidations | $681.8 million (87% from longs) |
These figures mark one of the largest single-day liquidation events in 2025, surpassing previous stress points like the April correction and January’s regulatory announcements from the EU.
What Triggered the Selloff?
The catalyst was a surprise statement from Donald Trump, confirming airstrikes on Iran’s controversial nuclear development facilities. While the broader financial markets felt the shockwaves, crypto’s 24/7 liquidity made it especially vulnerable to an immediate, unfiltered reaction.
The bombing of nuclear sites—including Fordow, Natanz, and Isfahan—represented a stark return to high-stakes Middle East military conflict, prompting traders to quickly offload risk assets or get auto-liquidated.
Bitcoin and Ethereum Prices Stabilize After Brief Dip
Following the liquidation cascade, prices briefly plunged before stabilizing. Bitcoin held near $102,000, while Ethereum managed to stay above $2,280, avoiding a complete freefall. However, both assets remained down intraday, reflecting cautious investor sentiment and a wait-and-see approach to potential retaliation or escalation.
This shows some resilience in market structure, suggesting that while leveraged longs were hit hard, spot holders and institutional buyers may still be active.
Centralized Exchanges See Bulk of Liquidations
The brunt of these liquidations occurred on leading centralized exchanges. Bybit and Binance collectively accounted for two-thirds of the $681 million wiped from long positions. These platforms offer high leverage and tend to attract retail traders who may lack risk mitigation strategies.
| Exchange | % of Liquidation Volume |
| Bybit | ~33% |
| Binance | ~33% |
| Others (OKX, Bitget, Deribit, etc.) | ~34% |
Traders using high leverage—often exceeding 10x—were the most affected. The suddenness of the news and the market’s immediate volatility left little time for position adjustments.
Rising Geopolitical Tensions Signal More Volatility Ahead
The U.S. government warned that “far greater” strikes could be on the table if Iran retaliates, adding another layer of uncertainty to global and crypto markets. Analysts warn that any follow-up attacks or regional escalations could trigger further liquidation cascades.
Crypto markets remain particularly susceptible to geopolitical black swan events, given their global nature, high retail exposure, and continuous trading cycles.
As one anonymous trader on X posted:
“When missiles fly, the margin calls are louder than the bombs.”
What Is Liquidation in Crypto?
A liquidation in crypto occurs when an exchange forcefully closes a trader’s leveraged position due to insufficient collateral. This is most common when the asset’s price moves significantly against the trader’s position, and they cannot meet the margin requirements.
Liquidation is a safety mechanism for exchanges to mitigate systemic risk, but for retail traders, it often results in complete loss of funds in leveraged accounts.
A cascade effect happens when a major price drop forces many traders into liquidation, which further accelerates the price drop, creating a feedback loop.
Conclusion
The unexpected U.S. strike on Iranian nuclear facilities delivered a shock to the crypto ecosystem, wiping out nearly $600 million in bullish bets and marking one of the most volatile weekends in 2025 so far. With over 172,000 traders liquidated and tensions still rising, crypto markets remain on high alert.
As geopolitical uncertainty converges with a highly leveraged environment, risk management and position sizing are more critical than ever. If future military action continues, expect more volatility, liquidation events, and structural pressure on leveraged trading across the crypto spectrum.
