Middle East Tensions Trigger Cryptocurrency Market Plunge

Overnight from June 21 to 22, the leading cryptocurrency fell below $101,000 following U.S. strikes on Iran’s nuclear facilities. At the time of writing, the asset had recovered to $102,700. 

Ethereum dropped to $2280, losing about 5% over the day. 

According to a post by President Donald Trump on TruthSocial, the United States conducted three strikes on the Fordow, Natanz, and Isfahan facilities.

“Now is the time for peace! Thank you for your attention to this matter,” Trump wrote.

Several media outlets report that U.S. actions could lead to further escalation of the Middle East conflict. Iran’s Foreign Ministry considers it justified to resist military aggression. 

American stock markets have yet to react to the situation, as they are closed for the weekend. 

Almost all digital assets fell into the “red zone.” Among the top 10 by market capitalization, Solana (-3.5% over the day) and DOGE (-3.7%) were hit hardest. 

According to Coinglass, the liquidation volume over the past 24 hours reached $682 million. The majority were long positions in Ethereum ($282 million). 

“Right now, there is literally an altcoin capitulation happening,” noted analyst and MN Trading founder Michaël van de Poppe. 

Bitcoin’s dominance index reached 62.5%, while Ethereum’s stood at 8.46%.

The total market capitalization plummeted by 3.4% to $3.27 trillion. The cryptocurrency fear and greed index fell to 42 points.

Earlier, Santiment highlighted the intensifying struggle between bulls and bears, as well as worsening sentiment in the cryptocurrency market.