The crypto market is bracing for high volatility amid rising geopolitical tensions. Fresh warnings of a possible US military strike on Iran within hours have further escalated the risk-off sentiment across financial markets.
The pressure has grown because John Kiriakou, a former CIA operative, predicted that Washington would take action against Iran between Monday and Tuesday. The crypto market shows a high alert status as traders expect the upcoming period to bring sudden price changes and increased market disturbances.
Crypto Market Reacts to Rising US–Iran Conflict Fears
On-chain analyst Lookonchain recently reported the possibility of a US military action against Iran as early as today or tomorrow. Summarizing reports from CCTV and Sputnik, Lookonchain stated that a former CIA intelligence official, John Kiriakou, alerted that the US has already prepared to launch a military action against Iran.
Kiriakou stated,
He further stated that US President Donald Trump gave Iran a 10-day deadline for a diplomatic deal. However, he added that these public ultimatums are more a strategy than reality. Kiriakou noted,
The crypto market has significantly reacted to this warning, with Bitcoin, Ethereum, and XRP experiencing substantial price declines. The global market cap, according to CoinMarketCap data, has dropped by 3.15%, which brings the total value to $2.26 trillion.
Rising US-Iran tensions have added to existing economic pressures. These developments, combined with heightened uncertainty, are driving increased volatility in the crypto market.
The crypto market entered a period of slight growth when both nations reached a nuclear agreement, as CoinGape reported. This growth was triggered by the investors’ expectations of easing geopolitical tensions. However, the latest development has sparked fresh speculations, prompting investors to take a cautious stance.
Massive Liquidations Reported Amid Sharp Sell-Off
The digital asset market faces upcoming volatility, causing traders to prepare for a massive crypto market downtrend. As a result, the industry has experienced significant financial losses across its main crypto exchanges. Over the past 24 hours, approximately $481.91 million worth of positions across multiple cryptocurrencies were liquidated. The total amount includes $434.34 million in long positions, which constitutes the majority. Meanwhile, only $47.58 million exists in short positions.
Source: CoinGlass; Crypto Market LiquidationBitcoin experienced an important liquidation event. This resulted in the destruction of $226 million worth of positions, including $206.85 million in long positions. Traders liquidated $116 million worth of ETH positions, which included $108 million in long positions
Source: https://coingape.com/us-strike-on-iran-possible-within-hours-crypto-market-on-high-alert/
