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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Jun 21, 2025 05:01 UTC
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Why Crypto Market Is Down Today? $240B Wiped Out Amid Israel-Iran Tensions
Crypto market lost $240 billion in value as fear over war continues rising.
Bitcoin dropped to $103,127 while Ethereum and other altcoins saw even sharper declines.
Whales sold over $900 million in Bitcoin, triggering a major round of profit-taking.
Massive $503 million in liquidations hit 134,000 traders, worsening the ongoing market crash.
The cryptocurrency market has been under immense pressure over the past week, primarily due to growing geopolitical risks. On June 21, the total cryptocurrency market dropped by 1.26% to $3.21 trillion, wiping out nearly $240 billion in value.
Bitcoin led the fall, slipping to a low of $103,127, down 2% in just seven days. Altcoins were hit even harder—Ethereum dropped to $2,456, losing 10% during the same time.
But what exactly is causing this crypto market crash? Let’s break down!
Israel-Iran War & U.S. Involvement Fears
The biggest trigger has been the rising conflict between Israel and Iran. Crypto investors are now worried that the U.S. might step into the war, as Trump has already warned Iran over not signing a deal.
As a result, Bitcoin fell from $108,000 to $103,000 in a week, while Ethereum, Solana & Dogecoin also dropped over 10%.
Whale Sell-Offs Taking Profits
Whales are starting to sell huge amounts of Bitcoin and moving off altcoin on the exchange. According to Glassnode data, wallets that held BTC for 6–12 months sold over $900 million recently. Even those who’ve held Bitcoin for over a year have started cashing out.
In early June, long-term holders took home $1.2 billion in profits, one of the biggest profit-taking waves this year.
Massive Liquidations Add Pressure
As prices dropped, many traders using leverage got wiped out. In the past 24 hours alone, over $503 million in crypto positions were liquidated, with 134,000 traders affected.
Most of these losses happened on Ethereum, which saw $183 million in liquidations. The largest single loss was seen by a Bitcoin trade worth $8 million on the Bybit exchange.
Altcoins Hit Harder Than Bitcoin
While Bitcoin dropped about 2%, most altcoins dropped even more. Ethereum is down 10% for the week, Solana fell over 11%, and XRP lost 1.4%. The Altcoin Index has dropped to 22, showing Bitcoin is dominating the market.
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FAQs
In the past 24 hours, $503 million in crypto was liquidated. Bybit saw the most with $191.19 million, followed by Binance ($115.60 million) and Gate ($73.07 million).
In the past 24 hours, over $503 million in crypto positions were liquidated overall. Specifically, Ethereum saw $183 million in liquidations, and XRP lost 1.4%. Bitcoin had a single $8 million liquidation.
This dip presents a complex situation. While historical patterns suggest Bitcoin often rebounds after geopolitical events, ongoing whale sell-offs and liquidations add risk, making careful research and risk assessment crucial for any investment decision.
The market’s immediate future is uncertain. While some historical trends suggest a potential rebound after geopolitical shocks, the extent of whale selling and mass liquidations indicates that a deeper correction is possible if these pressures persist.
Yes 
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