Altcoins Slide as U.S. Strikes Iran Amid Geopolitical Tensions: Market Faces Over $670M in Liquidations

The cryptocurrency market turned sharply red over the weekend as the United States launched airstrikes on Iranian nuclear facilities, marking a dramatic entry into the Iran-Israel conflict. The geopolitical escalation, confirmed by U.S. President Donald Trump on Saturday night, sparked widespread volatility across digital assets, particularly altcoins.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw a steep drop of over 5%, falling below $2,300 for the first time in a month. Cardano (ADA) also took a hit, slipping to a three-month low with a 6% daily loss.

Among the hardest hit were AI-focused tokens. Coins like VIRTUAL and Fetch.ai (FET) plunged nearly 10% amid a wave of investor uncertainty. The AI sector, which has gained traction in recent months, appears especially sensitive to sudden macroeconomic and geopolitical shocks.

Bitcoin (BTC), despite its reputation as a relative safe haven in the crypto space, wasn't spared entirely. While it remains above the $102,500 mark, analysts warn that a breach below the psychological $100,000 threshold could be imminent if tensions escalate further.

Crypto liquidations surged across the board, with over $670 million wiped out from leveraged positions, reflecting heightened risk aversion and panic selling. Market watchers are now closely monitoring Tehran’s next steps, as President Trump warned of additional U.S. military responses should Iran retaliate.

The market had been cautiously optimistic earlier in the week, but the abrupt shift in global affairs has reminded investors of the volatile intersection between digital assets and geopolitics. With no clear end to the conflict in sight, traders may brace for further turbulence in the days ahead.