Crypto Crash: $1B Liquidated as US Strikes Iran – Traders Lose Huge Profits!

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Crypto Liquidations Nears $1 Billion in 24 Hours as US Strikes Iran Again

Following recent US strikes within Iran, the cryptocurrency market saw $934.24 million in liquidations over the past 24 hours. This downturn eliminated approximately 167,400 trader accounts, largely due to the failure of highly leveraged long positions.

Bitcoin and Ethereum experienced the biggest losses during the recent market downturn, with $363 million worth of Bitcoin and $240 million worth of Ethereum being liquidated. The largest single liquidation order was a $15.34 million bet on Bitcoin increasing in value, which was closed on the Hyperliquid platform.

Crypto Liquidations Skew 93% to Longs

The majority of losses impacted traders who were betting on prices going up. Data from CoinGlass reveals that 93% of all positions were ‘longs’ – bets that the price would increase. Those who were betting on prices falling, known as ‘short sellers’, experienced minimal losses.

The current market situation suggests traders had likely built up positions based on last week’s hope for a ceasefire, particularly in derivatives trading, and were using borrowed funds to amplify those bets. The recent decrease in Bitcoin’s leverage ratio had already hinted that there weren’t many strong positions being held.

As an analyst, I’ve been tracking the recent market activity, and Bitcoin experienced a significant dip, falling below $73,000. This decline started earlier this week when former President Trump publicly raised concerns about a particular agreement, and has continued since then.

Things got pretty volatile in the markets today. Both stocks and oil really moved – oil especially, with Brent crude jumping because of worries about potential supply issues in the Strait of Hormuz. It basically wiped out a lot of the profits people had made betting on the recent calm after the ceasefire – a lot of those long positions were flushed out.

New US Strikes End Brief Ceasefire Hopes

Things took a turn for the worse in the crypto market after the US military announced it had hit Iranian targets. Apparently, they took out some drones and a ground station near the Strait of Hormuz, and as soon as that news hit, I saw prices start to drop. It’s always a risk when there’s geopolitical instability, and this definitely spooked a lot of investors, myself included.

The US stated that the targeted locations were a danger to both American troops and ships passing through the strait. Iran’s state media said no one was hurt in the operation. Meanwhile, Kuwait also put its air defenses into action to intercept incoming missiles and drones.

The situation worsened just days after both sides suggested they were close to agreeing on a ceasefire. President Trump stated in a cabinet meeting on Wednesday that negotiations had broken down.

He stated that negotiations with Iran were reaching a critical point, with very little room for further compromise. He also cautioned that the US might take more forceful action if a deal wasn’t reached. This direct approach contrasted sharply with the optimistic market reaction to former President Trump’s previous statements suggesting a de-escalation of tensions with Iran.

Whether or not talks resume between Washington and Tehran will determine what happens next. After a second round of attacks in just three days, there’s very little time left for diplomatic solutions.

Problems with shipping through the Strait of Hormuz could quickly cause oil prices to rise and lead investors to sell off risky assets. The United States has also increased its efforts to disrupt Iran’s financial activities, specifically targeting its use of digital currencies through Operation Economic Fury.

As a crypto investor, the $1.7 billion liquidation event earlier this year really opened my eyes to how fast leveraged positions can bounce back. I’ll definitely be keeping a close eye on funding rates and open interest in the coming days to get a feel for where things are headed.

The data will reveal if the recent market mood is a fresh start or just a temporary bounce back. Given Bitcoin’s previous price drop related to geopolitical events, any further negative news could push the price down to around $70,000.

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2026-05-28 09:41