Overview
- U.S. and Israeli forces carried out strikes on Iran, Israel declared a state of emergency, and a U.S. official confirmed American participation, triggering an immediate crypto selloff.
- Bitcoin briefly sank to roughly $63,000 and about $128 billion was erased from digital assets before prices recovered into the upper $60,000s within hours.
- Derivatives markets logged hundreds of millions of dollars in forced liquidations over 24 hours, with some trackers near $645 million and a subsequent short-covering squeeze aiding the rebound.
- The episode followed a recurring pattern in which bitcoin serves as a 24/7 pressure valve during weekend geopolitical shocks, with thinner liquidity since spot ETFs concentrated activity on weekdays.
- Market focus now centers on U.S. ETF create‑redeem flows and any escalation that lifts energy prices or inflation expectations, with options positioning clustered near $60,000 puts and rising interest in $75,000 calls after roughly $1 billion of ETF inflows last week.