The crypto market suffered a sharp downturn on Friday, as global geopolitical tensions and internal market pressure triggered a wave of liquidations across major digital assets.
Within 24 hours, the cryptocurrency market shed $180 billion in market capitalization, with Ethereum (ETH), Solana (SOL) , and Dogecoin (DOGE) among the hardest-hit assets.
Geopolitical Shockwaves Trigger Sharp Crypto Market Sell-Off
The sell-off was sparked after Israel carried out airstrikes on Iranian nuclear and military targets, intensifying fears of a broader conflict in the Middle East and sending shockwaves through global risk markets.
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Bitcoin briefly dropped below $103,000, losing over 5% within hours before recovering to around $105,000 early Friday.
Ethereum (ETH) fell more than 12%, hitting a low of $2,430, while Solana (SOL) plunged nearly 13%, falling to $140 levels. Dogecoin (DOGE) dropped slightly less, down about 11.7% to $0.1698, according to CoinMarketCap data.
The crypto market fell sharply on Friday, losing $180 billion. Source: CoinMarketCap
Massive Liquidations Across Crypto Market
Data from CoinGlass indicates that over $1.16 billion in cryptocurrency positions were liquidated within a 24-hour period, $1.03 billion of them being long positions.
Bitcoin and Ethereum saw the largest share of forced liquidations, but altcoins such as Solana, Dogecoin, and XRP also experienced significant sell-offs.
The crypto market lost $1.16 billion in liquidations over the past 24 hours. Source: CoinGlass
Options Expiry Adds to Market Volatility
Adding to the market turbulence is a major crypto options expiry event. Over $3.7 billion in options contracts are set to expire Friday at 08:00 UTC, a factor that often injects additional volatility.
Bitcoin accounts for $3.04 billion of open options, with a nearly balanced put-call ratio of 0.95, signaling mixed trader sentiment. The “max pain” price, where most options expire worthless, stands at $107,000, suggesting potential price movement toward this level.
Ethereum faces $687 million in expiring options, with a more bearish put-call ratio of 1.20 and a max pain level at $2,700.
Despite this, ETH has seen strong upside flows heading into expiry, raising the question of whether bullish momentum will continue or fade after the contracts roll off.
Why This Matters
Friday the 13th delivered a harsh reminder of how quickly sentiment can shift when geopolitical tensions, derivative expiries, and macroeconomic uncertainty collide, sending shockwaves through the crypto market.
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People Also Ask:
Sharp declines in the crypto market can be triggered by geopolitical events, regulatory news, large-scale liquidations, or macroeconomic uncertainty that spooks investors.
Liquidations occur when traders using leverage can’t cover losses, forcing their positions to be closed. This often accelerates price drops and volatility.
When large volumes of options contracts expire, especially on assets like Bitcoin and Ethereum, price swings can occur as traders adjust positions.
