$100M Liquidated as Crypto Crashes Amid Middle East War

• The U.S. and Israel’s strike on Iran has triggered $100M in crypto long liquidations in 15 minutes.
• Bitcoin price has dropped over 6% to $63,692 on Saturday, amid low Open Interest (OI).
• The crypto industry is under intense bearish pressure amid extreme fear of a prolonged Middle East conflict.

The crypto market has experienced the anticipated bloodbath amid the heated Middle East war. As Israel helped the United States attack Iran through Operation Epic Fury, more than $100 million was liquidated from the crypto-long traders during the first 15 minutes of the reported attacks.

According to market data analysis from CoinGlass, the total crypto liquidations surged by 129% in the past 24 hours to hover around $521 million at press time. Out of the total liquidation in the crypto market today, around $449 million involved long traders, Out of the total liquidation in the crypto market today, around $449 million involved long traders, who were betting on further upside in the market.

Crypto Market Turns Red Amid Low OI 

According to CoinMarketCap, the total crypto market cap dropped by 6% to hover around $2.2 trillion, and Bitcoin (BTC) price dropped over 6% to trade at about $63,692 at the time of writing.

Ethereum (ETH) price dropped 9% to about $1,856, triggering further selloffs in the altcoin market. As such, the crypto community has turned extremely cautious amid low Open Interest (OI). Moreover, the crypto market has been trapped in a bear market akin to 2022.

According to CoinGlass market data, total crypto OI has dropped from around $140B in January to around $90 billion at press time. The geopolitical crisis in the Middle East is further fueling bearish sentiment amid low OI.

What’s Next?

The crypto market is expected to remain under heavy stress, especially as the United States slows down on the CLARITY Act. According to CoinMarketCap’s data, the fear and greed index has been hovering in the extreme fear zone, currently at 14/100.

With the war between Iran and the United States expected to continue in the near future, the crypto capitulation will likely intensify. Furthermore, Iran has hit back at U.S. military bases in Kuwait, the UAE, Qatar, and Bahrain.

The crypto market has not benefited from the rising global liquidity, as observed by M2 exponential growth. Instead, investors have been seeking refuge in the precious metal industry led by Gold and Silver. 

According to market data from TradingView, the gold price has surged 3% during the past five days to trade at about $5,278 per ounce at press time. Silver price surged over 6% in the past 24 hours to trade at about $93.7 at press time.

Related: Gold and Silver Surge as Bitcoin Faces Extended Correction