Altcoins Turn Red as US Strikes Iran in Major Escalation

The crypto market reflected significant losses as the US officially entered the Iran-Israel war late Saturday night. According to President Trump, the US has bombed notable nuclear sites in Iran, signaling its first active strike in this geopolitical conflict.The crypto market reacted with notable liquidations across the altcoin sector. Ethereum dropped over 5% following the news, trading below $2,300 for the first time in a month. 

Also, Cardano is nearing a 3-month low following the news – down 6% today. AI agent coins suffered the biggest blow, as VIRTUAL and FET dipped nearly 10%.

Crypto Market Liquidations After US Strikes Iran. Source: Coinglass

While Bitcoin still holds above $102,500, indicators suggest it could potentially fall below the $100,000 psychological level if further escalations are reported over the weekend.

pic.twitter.com/wu9mMkxtUg

— Donald J. Trump (@realDonaldTrump) June 21, 2025

Previously, BeInCrypto analysts projected that Bitcoin price could drop 10% if the US entered the Iran-Israel war. 

As of now, the market will be cautiously looking at Iran’s response. President Trump has stated that any response from Iran would result in further US actions.

Overall, crypto liquidations exceeded $670 million today, and further escalation could very well signal a short-term bearish cycle.