The crypto market witnessed one of its most brutal wipeouts this year as rising geopolitical tensions in the Middle East triggered a massive sell-off, wiping out over $1.14 billion in positions within a single day.

According to data from Coinglass, nearly 91% of these liquidations were long positions, indicating widespread optimism that was abruptly crushed by sudden market volatility. The events unfolded as Bitcoin fell sharply from a local high of $108,000 to as low as $103,000, following Israeli airstrikes across Iran.

This sharp correction left hundreds of thousands of traders exposed—and many wrecked.

Binance Sees the Largest Single Liquidation

Leading the carnage was Binance, the world’s largest cryptocurrency exchange, which saw $456 million in liquidations. The largest individual loss was a jaw-dropping $201 million BTC/USDT position, highlighting how leveraged bets on major cryptocurrencies can quickly implode during unpredictable geopolitical moments.

Trailing closely behind were Bybit with $372 million and OKX with $126 million in liquidations, as the selling spread rapidly across major platforms.

Bitcoin and Ethereum Take the Biggest Hit

The liquidation wave hit Bitcoin and Ethereum hardest, erasing $444 million and $291 million, respectively. These two assets have long been considered the core of any crypto portfolio, but the recent correction shows even the most established digital currencies are far from immune to external shocks.

This event underscores a key theme: Crypto is still a high-risk asset class, particularly vulnerable to macro and political developments. Bitcoin, often pitched as a “digital safe haven,” behaved more like a risk asset this time around.

What Triggered the Meltdown?

The liquidation cascade followed Israel’s start of “Operation Rising Lion”, targeting critical Iranian military and nuclear infrastructure. Reports confirmed the bombing of the Natanz nuclear facility, and the deaths of several high-ranking Iranian military officials, including a prominent nuclear scientist.

The International Atomic Energy Agency (IAEA) is currently assessing the impact, with special attention to radiation risks and inspector safety. Meanwhile, Israel declared a state of emergency, and markets are bracing for a potential Iranian retaliation, which could destabilize oil supplies in the region.

Bitcoin Tracks Global Risk Assets

Despite long-standing narratives positioning Bitcoin as an inflation hedge or geopolitical hedge, the recent crash reaffirms that Bitcoin remains deeply tied to traditional financial sentiment. As global markets panicked, investors rushed to reduce risk, and Bitcoin followed stocks and commodities in a synchronized downturn.

Interestingly, while gold saw a slight rise and oil prices surged over 10% due to supply fears, Bitcoin sold off, proving once again that during market-wide stress, crypto tends to be among the first assets dumped.

246,000+ Traders Liquidated in One Day

Over 246,000 traders were liquidated in the past 24 hours, highlighting how heavily leveraged crypto markets remain, even after recent regulatory crackdowns. Many of these traders were holding long positions in anticipation of a sustained Bitcoin rally above $110,000.

However, the sudden geopolitical shock threw those predictions out the window.

This liquidation wave serves as a harsh reminder: while upside potential in crypto can be explosive, downside risk is just as swift—and often far more devastating for traders using leverage.

What Comes Next?

Market analysts are now closely watching for further escalation in the Middle East, as any retaliation from Iran could deepen global financial instability. For crypto markets, more downside volatility is expected if tensions worsen.

However, some traders see the dip as a buying opportunity, betting that the Bitcoin correction is temporary and that geopolitical concerns may eventually strengthen the argument for decentralized, borderless assets.

But until stability returns, volatility is likely to dominate.

Final Thoughts

This week’s crypto liquidation event is one of the largest of 2025 so far. While it was triggered by war-related news, it exposed much deeper concerns about crypto’s vulnerability to macro risk and the dangers of over-leveraged trading.

With Bitcoin falling sharply, Ethereum struggling, and Binance leading billions in losses, traders are being forced to rethink their risk appetite—especially in uncertain global conditions.

Whether crypto recovers quickly or remains volatile will likely depend not just on charts, but on political developments far from the blockchain.