 ▲ Cryptocurrency decline / ChatGPT-generated image |
Geopolitical tensions are escalating as warnings emerge that the United States could launch a military strike against Iran within hours. The shock has triggered hundreds of millions of dollars in forced liquidations across the cryptocurrency market, resulting in a sharp crash.
According to cryptocurrency-focused outlet CoinGape on February 23 (local time), former CIA officer John Kiriakou claimed that the United States has decided to carry out an attack on Iran as early as Monday or Tuesday. Citing a former colleague who referenced a White House official, Kiriakou delivered what he described as a serious warning to the markets. He explained that although President Donald Trump had reportedly given Iran a 10-day diplomatic deadline, this may be a strategic move to create confusion, and an attack could begin even before the deadline expires.
As geopolitical risks intensified, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and XRP plunged simultaneously. According to CoinMarketCap data, the global cryptocurrency market capitalization fell 3.15% over the past 24 hours to approximately $2.26 trillion. After briefly easing due to news of nuclear agreement discussions between the two nations, tensions have once again escalated sharply, prompting investors to offload risk assets and adopt a cautious wait-and-see approach.
Amid the panic-driven sell-off, massive liquidations followed. Over the past 24 hours, approximately $481.91 million in positions were liquidated across the cryptocurrency market, with long positions accounting for $434.34 million, representing the vast majority. In contrast, short liquidations totaled only $47.58 million, underscoring the heavy losses suffered by investors who were unprepared for the abrupt downturn.
By asset, Bitcoin alone saw around $226 million in liquidations, including $206.85 million in long positions. Ethereum also recorded $116 million in liquidated positions, highlighting the rapid evaporation of liquidity that had supported the broader market. Traders are closely monitoring developments, anticipating heightened volatility until geopolitical uncertainties are resolved.
The reported 10-day deadline presented by President Trump includes demands such as halting Iran’s ballistic missile program, stopping uranium enrichment, and ending support for armed groups including Hamas and Hezbollah. Kiriakou emphasized that Trump has previously launched actions when opponents were caught off guard, warning of the possibility of imminent military action. The future trajectory of the cryptocurrency market is expected to depend on whether the United States proceeds with concrete military measures and on how the situation in the Middle East evolves.
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