Crypto Market Crashes 2% on Trump's Iran Ceasefire Declaration

The cryptocurrency market took a sharp downturn within minutes following U.S. President Donald Trump's declaration that the Iran ceasefire was 'over'. The sudden escalation of geopolitical tensions sent shockwaves through digital assets, with Bitcoin price and Ethereum price each dropping nearly 2%. This selloff erased billions in value from the broader crypto market as investors rushed out of risk assets and triggered a fresh wave of liquidations across major exchanges.

The surge in volatility has traders closely watching whether this decline remains a short-lived headline reaction or develops into a broader market correction. Historically, geopolitical shocks have triggered similar reactions, with traders unwinding leveraged positions and moving capital into safer assets until uncertainty begins to ease.

Over $400 million worth of leveraged crypto positions were liquidated over the past 24 hours, with long traders absorbing the majority of the losses. Bitcoin and Ethereum accounted for a significant share of those liquidations as falling prices forced automatic position closures, creating additional selling pressure.

The breakdown in both Bitcoin and Ethereum price has pushed their charts toward key support levels. If buyers reclaim these areas, the selloff could remain a temporary liquidity sweep. However, a decisive break below these support levels may expose the next demand zone near $60,000-$59,000 for BTC and $1,600-$1,550 for ETH.