US strikes in Iran trigger $934M crypto liquidations

U.S. strikes on Iranian targets triggered $934.24 million in crypto liquidations over 24 hours and closed roughly 167,400 leveraged long positions, pushing Bitcoin below $73,000.

Derivatives data showed Bitcoin and Ethereum suffered the largest losses. CoinGlass recorded $363 million in Bitcoin liquidations and $240 million in Ethereum liquidations. The largest single closure was a $15.34 million Bitcoin long on Hyperliquid. Long positions accounted for about 93% of total liquidations.

The cascade began after U.S. Central Command confirmed strikes near the Strait of Hormuz that destroyed four one-way attack drones and a ground control station at Bandar Abbas. The Pentagon described the targets as posing a threat to American forces and to maritime traffic. Iranian state media reported no casualties. Kuwait activated air defenses against incoming missiles and drones.

Traders had increased long leverage during a recent rally tied to tentative ceasefire talks. Bitcoin’s leverage ratio had previously declined, indicating relatively thin positioning. The price slide accelerated after President Donald Trump, during a cabinet meeting, described Tehran as ‘negotiating on fumes’ and warned the U.S. might ‘finish the job’ if no agreement materialized.

The liquidation event affected other risk assets. Brent crude futures rose as market participants priced in possible disruptions through the Strait of Hormuz. Stocks and oil markets moved as traders reassessed geopolitical risk. The Pentagon’s Operation Economic Fury, a campaign targeting Iran’s use of digital assets, has added pressure on Iran’s crypto infrastructure.

Market participants will watch funding rates and open interest in coming sessions to see whether sentiment has reset or long exposure is being rebuilt. Earlier this year a separate liquidation cascade totaled about $1.7 billion, illustrating how quickly leverage can return. With Bitcoin trading below $73,000 during the rout, the $70,000 level stands as the next notable support to watch.

Iranian officials did not report casualties from the strikes, and U.S. authorities framed the action as defensive. Future market direction will depend in part on whether Washington and Tehran resume negotiations and whether shipping through the Strait of Hormuz remains at risk.