The crypto market took a heavy hit over the weekend, with prices plummeting across major coins like Bitcoin, Ethereum, and Solana. The sudden downturn came after geopolitical tensions flared in the Middle East, following a U.S. airstrike on Iranian nuclear facilities and Iran’s swift retaliation. This triggered a wave of fear across financial markets, with crypto being one of the first asset classes to react due to its 24/7 trading nature.
Bitcoin Falls Below $100K for the First Time in Weeks
Bitcoin (BTC), the world’s largest cryptocurrency, dropped sharply over the weekend. After holding above the $100,000 mark for several weeks, BTC crashed down to $99,764. This marked a 6% drop from last weekend and sent shockwaves across the market.
Much of this drop was due to panic selling and high-leverage positions being wiped out on derivatives exchanges. Traders rushed to close their positions as the market turned risk-off. The fall below six figures has made investors cautious, especially given the rising global uncertainty.
Ethereum Suffers Double-Digit Weekly Losses
Ethereum (ETH) also suffered a severe setback. The second-largest crypto by market cap dropped to $2,184, its lowest level in several weeks. Over the past seven days, ETH has lost over 14% of its value, making it one of the worst-hit major tokens.
Source: CoinMarketCap
Interestingly, Ethereum’s 24-hour trading volume surged to $29.12 billion, showing a spike in market activity. This suggests that many traders were scrambling to exit their positions or rebalance their portfolios during the downturn.
Solana’s Trend Reverses Abruptly
Solana (SOL), which had shown impressive strength earlier in the month, was not spared in this crash. The token plummeted by over 15% in just 24 hours, ending Sunday at $128.95. Its trading volume also saw a massive jump, rising more than 48% in a day to hit $5.24 billion.
Source: CoinMarketCap
The sudden reversal in Solana’s price caught many investors by surprise. Just days ago, it had been one of the more stable and promising performers among large-cap cryptocurrencies. Now, the sharp decline has cast doubt over its short-term outlook.
Altcoins Also in Deep Red
The impact was felt across the altcoin space too. Binance Coin (BNB) fell by 5%, Ripple’s XRP dropped below $1.94, and Avalanche (AVAX) sank under $16. In total, the market lost more than $200 billion in valuation within 36 hours.
The total crypto market cap now stands at $3.04 trillion, down about 5%. The overall market mood is one of caution and high alert as investors await more news from the geopolitical front.
What’s Next? Volatility Ahead
With traditional financial markets closed over the weekend, crypto was the first to react to the geopolitical shock. The 24/7 nature of digital assets means they often lead in pricing in global risks and this weekend proved just that.
As global markets reopen on Monday, investors will be watching closely to see if the selloff spills over into stocks and commodities. For now, the crypto market remains on edge, and further volatility is expected if the situation in the Middle East worsens.
This weekend’s crash is a stark reminder of how quickly sentiment can shift in the crypto world, especially during times of global unrest. Bitcoin dropping below $100K, Ethereum’s double-digit losses, and Solana’s reversal all signal that traders are now bracing for more uncertainty. In times like these, caution is key.
