A surprise US airstrike on Iran’s nuclear facilities has sent cryptocurrency markets into a tailspin, with $595 million in bullish bets wiped out in hours. Bitcoin fell below $104,000, while Ethereum and other major tokens suffered steep losses, reflecting the market’s sensitivity to geopolitical shocks. Yet, some investors see a glimmer of opportunity amid the chaos, betting on a swift recovery.
A Market-Wide Crash
On 22 June 2025, US President Donald Trump announced “very successful” airstrikes on Iran’s nuclear sites, including Fordo and Natanz, triggering a sharp sell-off in cryptocurrencies. Bitcoin dropped to $103,200, with Ethereum and other coins like Solana and Cardano also hit hard. Over 172,000 traders faced liquidations, with total losses reaching $681.8 million, of which $595 million were long positions, according to CoinGlass data. Ethereum bore the brunt, with $282 million in bullish bets erased, followed by Bitcoin at $175 million.
Social media reflected the panic, with one user noting “the market got obliterated” as Bybit and Binance led the liquidation frenzy. Crypto markets have a history of volatility during geopolitical crises, rallying in 2020’s pandemic uncertainty but slumping in 2022’s Russia-Ukraine conflict. The current rout suggests investors are fleeing to safer assets like gold, though high trading volumes hint at bargain-hunting. 
Geopolitical and Market Triggers
The airstrikes, targeting Iran’s nuclear programme, raised fears of retaliation and a broader Middle East conflict. Iran’s role in OPEC amplifies the risk of oil market disruptions, with Brent crude prices climbing 3% to $82 per barrel on 22 June. Such spikes could fuel inflation, potentially forcing the US Federal Reserve to tighten monetary policy, a headwind for risk assets like cryptocurrencies.
Market dynamics worsened the decline. The crypto market had been buoyant, with Bitcoin trading above $106,000, driven by institutional enthusiasm, including Texas’ recent Bitcoin reserve allocation. However, heavy leverage—often exceeding 100:1—amplified losses when panic selling hit. The simultaneous expiry of options contracts, known as “triple witching,” further stoked volatility, catching bullish traders off guard.
Outlook Amid Uncertainty
Despite the carnage, some traders remain optimistic. “Geopolitical dips are often short-lived” said one analyst, pointing to Bitcoin’s rebounds after past crises. By late 22 June, Bitcoin had edged up to $103,800, with dip-buyers stepping in. Institutional interest persists, with a major Bitcoin ETF recording $90 million in inflows on the day, suggesting confidence in a recovery.
The market’s path depends on Iran’s response. A restrained counterstrike might prolong uncertainty, keeping prices subdued, while de-escalation could see Bitcoin reclaim $106,000. The Federal Reserve’s 16 July 2025 meeting looms large; a hawkish stance could cap gains. Still, cryptocurrencies’ decentralised nature fuels hope among investors. “Bitcoin thrives on disruption” said a Hong Kong-based fund manager, echoing a view common in crypto circles. Whether it can shrug off this latest shock remains to be seen.
