Bitcoin Falls Below Key $73K Level
The crypto market suffered a sharp sell-off Thursday after fresh military escalation in the Middle East sparked panic across global risk assets.
Bitcoin dropped below the critical $73,000 level for the first time in months, falling as low as $72,912 during Asian trading hours before slightly recovering.
At the time of reporting, Bitcoin traded near $72,978, down more than 3% over the past 24 hours and over 6% during the last week.
The broader crypto market followed the decline as traders rapidly exited leveraged positions amid rising geopolitical fears.
Ethereum, Solana and XRP Slide Lower
Major altcoins also posted steep losses during the market-wide correction.
Ethereum fell more than 4% and lost the important $2,000 support level, trading near $1,976.
Solana dropped roughly 3.5%, while XRP slid nearly 4%.
Dogecoin also moved lower alongside the broader market as traders rushed to reduce exposure to risk assets.
Among major cryptocurrencies, only TRON and Hyperliquid managed to maintain small weekly gains despite heavy selling pressure.
Nearly $1 Billion in Crypto Liquidations
The sudden sell-off triggered one of the largest liquidation cascades of the year.
According to market data from CoinGlass, roughly $958 million worth of leveraged positions were wiped out over a 24-hour period.
Long positions accounted for the overwhelming majority of liquidations, totaling approximately $897 million, while short liquidations represented only around $61 million.
Bitcoin alone accounted for roughly $386 million in forced liquidations, followed by Ethereum with approximately $246 million.
The single largest liquidation reportedly involved a $15.3 million Bitcoin position on Hyperliquid.
The liquidation imbalance revealed how heavily traders had positioned themselves for continued upside before the market suddenly reversed.
Middle East Escalation Sparks Market Panic
The crypto market decline followed reports that United States forces carried out new airstrikes against an Iranian military site near the Strait of Hormuz.
US officials described the operation as defensive and linked it to protecting maritime traffic in the region after several reported attacks involving drones and commercial vessels.
At the same time, the US Treasury announced additional sanctions targeting Iranian-linked maritime organizations operating around the strategically critical shipping route.
Iran later reportedly targeted the American base connected to the operation, further intensifying fears of broader regional escalation.
Global Markets React to Geopolitical Risks
The renewed conflict sent shockwaves through global financial markets beyond crypto.
World stock indexes moved lower, while futures tied to the S&P 500 and Nasdaq declined as investors shifted away from riskier assets.
Oil prices also climbed sharply as traders worried about potential disruptions to energy flows through the Strait of Hormuz, one of the world’s most important oil transit corridors.
US President Donald Trump attempted to calm concerns during a White House cabinet meeting, stating that no single country would control the waterway.
Traders Caught Offside by Sudden Reversal
The speed of the crypto correction highlighted how aggressively traders had positioned for continued market recovery following weeks of relative stability.
Bitcoin had managed to remain above $74,000 despite slowing ETF inflows and ongoing geopolitical tensions throughout the previous month.
Thursday’s military escalation finally broke that support level, triggering rapid liquidations and accelerating downside momentum.
Analysts noted that the nearly 93% long-side liquidation imbalance suggested traders were heavily leaning bullish before the sudden reversal caught the market off guard.
