Markets Tumble as U.S.-Iran Tensions Trigger $958M Crypto Wipeout

Table of Contents Military strikes conducted by the United States against Iranian targets unleashed widespread panic selling throughout cryptocurrency and equity markets Thursday, eliminating close to $1 billion in leveraged trading positions and pressuring futures contracts downward. Bitcoin plunged to an intraday low of $72,912 during Asian market sessions, marking its first descent below the $73,000 level in several months. The leading cryptocurrency was changing hands at $72,978, representing a 3.4% decline over 24 hours and a 6.3% retreat across the previous week. Ethereum experienced a steeper 4.2% pullback to $1,976, breaching the psychologically significant $2,000 threshold. Solana retreated 3.5%, XRP declined 3.6%, and Dogecoin surrendered 3.2% of its value. Hyperliquid stood as the sole major cryptocurrency maintaining positive weekly momentum. Despite falling 4.5% on the day, it preserved a 2.4% gain over the seven-day period. Tron similarly maintained modest weekly gains despite the widespread market downturn. The dramatic price action sparked extensive forced position closures. According to CoinGlass analytics, total liquidations reached $958.8 million across 167,706 individual traders within 24 hours. Bullish positions comprised $897 million of this figure, while bearish bets accounted for merely $61 million. Bitcoin dominated liquidation activity at $386 million. Ethereum ranked second with $246 million. The single largest forced closure involved a $15.34 million Bitcoin position on Hyperliquid. The overwhelming 93% bias toward long positions reveals that traders had positioned themselves for price appreciation immediately before the market reversed direction sharply. The United States Central Command executed precision strikes targeting an Iranian military facility situated near the strategically vital Strait of Hormuz. American forces additionally intercepted four Iranian assault drones launched toward a commercial vessel, characterizing the response as purely defensive. BREAKING: Iran's IRGC releases a statement saying that it has retaliated to the US strike on an Iranian military position in the Strait of Hormuz by attacking a US airbase in Kuwait. In their statement, the IRGC says "aggression will not go unanswered." Oil prices are up nearly… — The Kobeissi Letter (@KobeissiLetter) May 28, 2026 The Treasury Department implemented fresh sanctions against Iran’s Persian Gulf Strait Authority, alleging the organization has engaged in systematic extortion of vessels transiting the waterway. Iranian forces reportedly retaliated against the American military installation from which the strikes originated. Kuwait announced it had responded to incoming missile and drone threats, with military officials confirming explosions detected from activated air defense systems. President Trump declared that no individual nation would exercise dominance over the critical shipping channel. “The strait’s going to be open to everybody,” he stated during a cabinet session. Equity futures contracts declined universally. Dow futures retreated 0.2%, S&P 500 futures weakened 0.4%, and Nasdaq 100 futures registered a 0.8% loss. Crude oil valuations advanced as the military confrontation heightened anxieties regarding commercial shipping through the strait. The MSCI All Country World Index retreated 0.4% from previously established record levels, while Asian equity benchmarks tumbled 1.7%. Amid the market turbulence, positive developments emerged. Following the market close, Snowflake unveiled impressive quarterly performance and revealed a $6 billion collaboration agreement with Amazon Web Services. The company’s shares surged more than 30% during after-hours trading. Salesforce exceeded analyst projections, though conservative forward guidance sparked concerns regarding artificial intelligence’s influence on enterprise software expenditures. Marvell and HP likewise released quarterly reports. Looking ahead, market participants will closely monitor the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index, scheduled for Thursday release, seeking evidence of accelerating price pressures.