Bitcoin sinks below $75k as Iran tensions trigger $945M liquidation

Bitcoin’s price fell below $75,000 on Friday, extending losses into Saturday and triggering $945 million in liquidations as reports of potential U.S. military strikes against Iran soured risk sentiment.

"Approximately $945 million in leveraged positions were liquidated during the market downturn," CoinGlass data shows, with the majority of those being long positions betting on price increases.

The selloff was broad, pushing the total cryptocurrency market capitalization down 3% to $2.5 trillion within 24 hours, according to data from CoinGecko. Ether and other major altcoins followed Bitcoin lower, a move characteristic of macro-driven fear rather than a crypto-specific issue.

The move shatters a fragile calm that had settled over markets since an early April ceasefire, putting the focus squarely on the upcoming $6.25 billion options expiry on May 29, where the $75,000 level represents the “max pain” price.

Geopolitical Pressure Mounts

The market dip accelerated after reports that the U.S. military was making preparations for possible action against Iran. While no final decision was made, President Trump’s return to the White House and cancellation of other plans signaled a heightened state of urgency. The White House reiterated that all military options are on the table if Tehran rejects the latest U.S. proposal, which is being brokered by Pakistan and Qatar.

On-Chain Data Tells a Different Story

Despite the sharp pullback, on-chain data suggests large-scale investors remain undeterred. Whale wallets have continued to accumulate Bitcoin in May, adding another 30,000 BTC worth approximately $2 billion after purchasing nearly $4 billion worth in April. This accumulation, paired with a 50% jump in open interest to $64 billion over the past two months, indicates traders are positioning for potential upside.

The Broader Macro Warning

This crypto-specific turmoil is unfolding against a precarious macroeconomic backdrop. Hedge fund Zweig-DiMenna recently warned clients of a potential 15% annualized decline in the S&P 500, citing a proprietary inflation gauge that just hit a level last seen before the 2022 market downturn. The firm noted that the 10-year Treasury yield would need to rise from 4.6% to 5.8% to normalize its relationship with inflation, a move that would significantly pressure risk assets like equities and crypto.

For now, traders are watching key technical levels. The price found initial support around $77,000. A failure to hold this level could open the door to a retest of the trend line near $72,000 or even the cycle low of $67,000. Conversely, reclaiming resistance at $82,000 could invalidate the immediate bear case for many traders ahead of the month-end options settlement.

This article is for informational purposes only and does not constitute investment advice.