Bitcoin Plunge Below $100K Triggers $1.79B Liquidation Bloodbath Amid US-Iran Escalation

Crypto markets got steamrolled as geopolitical tensions sent Bitcoin into freefall—proving once again that digital gold still bends to old-world chaos.

Liquidation apocalypse: Over $1.79 billion evaporated faster than a meme coin's utility when BTC breached the psychological $100K floor. Leveraged longs got rekt in what analysts are calling 'Black Thursday 2.0'.

War drums = sell signals: The selloff accelerated after US airstrikes hit Iranian targets, reminding crypto traders that Satoshi didn't account for F-35s in the whitepaper. 'Risk-off' mode activated faster than a CEX freezing withdrawals.

Silver lining? The flushout liquidated weak hands—just in time for institutions to scoop up cheap coins before the next ETF approval cycle. Because nothing screams 'decentralization' like BlackRock's bid-ask spread.

Ethereum fell 17% over the weekend but showed a similar relative bounce, risingafter weekend lows. The leading altcoin is down 21% since the local high of $2,877 mid-month.

The broader sell-off accentuated the sensitivity of risk assets to geopolitical shocks, especially with leverage levels in crypto markets still elevated. “The fact that nearly a billion dollars was flushed out so quickly suggests many traders were positioned for relative stability, not sudden escalation,” one derivatives trader told CryptoSlate.

In traditional markets, crude oil prices surged on fears of disruption to global energy flows. Brent futures hit an intraday high of, a five-month peak, before paring gains to settle around, still upon the day. WTI crude followed a similar trajectory, peaking atbefore easing back below. Analysts attributed the pullback to the fact that shipments are currently still flowing through Hormuz.

“Current escalation could spiral Brent toward $100, with $120 increasingly plausible if Hormuz is actually blocked,” Sugandha Sachdeva of SS WealthStreet told Reuters.

Gold, often a go-to in times of crisis, defied expectations by slippingto, while futures on COMEX were downat. Traders pointed to a stronger U.S. dollar, buoyed by haven flows, as a key reason for gold’s underperformance. “The USD uptick pegged Gold back despite risks,” said Tim Waterer, chief market analyst at KCM Trade.

S&P 500 futures dippedin premarket trade Monday, clawing back from steeper overnight losses. The relatively muted equity reaction suggests that investors still view the conflict as a regional flare-up rather than a broader geopolitical crisis. Yields on U.S. Treasuries were little changed, reinforcing that view.

All eyes will be on the US market opening later today to see whether oil and gold continue to retreat alongside strength from equities and Bitcoin.

Oil disruption fears continue

Iran’s closure of the Strait of Hormuz remains a threat, not a fact. While its parliament has approved the move, shipping through the channel is expected to continue Monday afternoon. Still, the Strait handles about, and even a temporary disruption could Ripple through energy markets and inflation expectations worldwide.

The White House has threatened further force if Iran retaliates. TRUMP called for negotiations while also stoking the flames, declaring a need to “Make Iran Great Again.” The market will closely watch any further military or diplomatic developments this week. With Federal Reserve Chair Jerome Powell scheduled to speak twice this week, traders are also weighing whether geopolitical uncertainty might influence the central bank’s rate path.

Bitcoin’s rapid selloff and partial rebound offer a stark reminder of its evolving role as a geopolitical barometer.

Bitcoin is currently reacting less to macro data than it is to missiles in the Middle East.