Ceasefire Broken, $500M Crypto Gone—Will Bitcoin Crash Again?

Iran-Israel War Sparks $500M Crypto Liquidation: Can Bitcoin Stay Above $105K?

The cryptocurrency market was rocked on June 24, 2025, as tensions between Iran and Israel reignited in dramatic fashion. A fragile ceasefire crumbled after Iran launched missiles into Israeli territory, setting off alarms across northern Israel. The sudden escalation triggered a wave of panic across global financial markets — and crypto was no exception. Within hours, traders watched in disbelief as over $500 million in crypto positions were liquidated, marking one of the most volatile days of the year.

Source: X

The Ceasefire That Collapsed — And Its Ripple Effect on Crypto

Earlier in the day, hopes had been high. Former U.S. President Donald Trump, on his Truth Social platform, spoke optimistically about the path to peace. But optimism quickly turned to alarm when the Israeli Defense Forces confirmed Iran’s breach of the ceasefire agreement.

“In light of the severe violation of the ceasefire carried out by the Iranian regime, we will respond with force,” said Lieutenant General Eyal Zamir, Chief of Staff of the Israeli Defense Forces. His statement, broadcast across global media outlets, signaled that the region could be on the brink of broader conflict.

Source: X

The geopolitical shockwaves immediately spilled into the cryptocurrency market. With investors rattled by the uncertainty, volatility spiked across major tokens and exchanges.

$500 Million Wiped Out: The Crypto Liquidation Breakdown

According to widely followed crypto data aggregator Coin Bureau, the 24-hour period following the missile attacks saw $502.92 million worth of crypto positions liquidated across global exchanges.

The breakdown paints a clear picture of panic and overleverage:

• Total liquidations: $502.92 million

• Short positions liquidated: $371.28 million

• Long positions liquidated: $131.63 million

• Largest single liquidation: $12.14 million ETH/USDT order on Binance

• Total traders impacted: 132,874

What makes this liquidation event particularly significant is how quickly sentiment flipped. In the immediate aftermath of early ceasefire reports, Bitcoin surged toward $106,000 — sparking a short squeeze that wiped out many bearish bets. But as news of renewed violence spread, uncertainty returned, pulling prices back down and catching long traders off-guard.

Source: TradingView

Bitcoin Price: Can It Hold the Line?

As of the latest trading session, Bitcoin is hovering around $105,312, having pulled back from its earlier $106,000 peak. Traders and analysts are now focused on key technical levels that could determine the next major move.

Technical Snapshot:

• Support level: $100,600 — a critical threshold that, if broken, could open the door to deeper losses

• Resistance level: $110,147 — a ceiling that bulls must overcome to regain control

• Bollinger Bands: Bitcoin recently bounced off the lower band, traditionally viewed as a buy signal in oversold conditions

• Relative Vigor Index (RVI): The purple trend line remains below the yellow signal line, indicating continued bearish pressure

• Volume: Trading volume remains muted, raising questions about the strength of any near-term rebound

In short, Bitcoin remains at a crossroads. A decisive break above $110,000 could spark renewed bullish momentum, while a slide below $100,600 could trigger another round of forced liquidations.

What Analysts Are Saying

Prominent voices in the crypto space have weighed in on the market’s reaction. Crypto analyst Ash Crypto commented on X (formerly Twitter):
“BITCOIN BOUNCED AS WE HOPED,” sharing a chart highlighting Bitcoin’s resilience at support levels.

Meanwhile, trader Michaël van de Poppe remarked:
“#Bitcoin has a trend switch. It went past $103K. If it dips again, $103K is a perfect buy zone.”

Van de Poppe’s comments reflect a cautiously optimistic view that Bitcoin’s major support levels may hold — provided the geopolitical situation doesn’t deteriorate further.

Interestingly, while Bitcoin has been the focus, many altcoins, including Ethereum and XRP, posted impressive gains of 6% to 8% over the same period, signaling a potential shift in trader interest as Bitcoin’s volatility continues.

Why This Liquidation Event Matters

The scale of the June 24 liquidation serves as a stark reminder of crypto’s vulnerability to external shocks. Unlike traditional markets, where circuit breakers or central bank interventions can slow down panic selling, crypto trades 24/7 in a largely unregulated environment. This means that geopolitical events — whether a missile strike or a peace announcement — can translate into massive price swings within minutes.

For traders, this underscores the importance of risk management. High leverage may amplify gains during stable periods, but it can lead to catastrophic losses when markets turn volatile.

What’s Next for Bitcoin and Crypto?

Looking ahead, all eyes are on two key factors:

1. Geopolitical developments — Any further escalation in the Iran-Israel conflict could add fresh selling pressure to risk assets, including cryptocurrencies. Conversely, a move toward renewed dialogue could help stabilize markets.

2. Technical price levels — For Bitcoin, the $105,000 to $106,000 zone will be critical. Holding this range could pave the way for a retest of $110,000. But if selling intensifies, support at $100,600 could be tested — and if broken, could accelerate losses toward the mid-$90,000 range.

Final Word: Stay Alert, Stay Prepared

In the world of crypto, fortunes can change with a single headline. The liquidation shock of June 24 is a clear example of how tightly global events and digital asset prices are intertwined. For investors, this means remaining vigilant, managing leverage carefully, and staying informed.

Whether Bitcoin’s $105,000 level holds will depend not just on charts and indicators, but on decisions made in capitals thousands of miles away from the trading floor. For now, the crypto market watches, waits, and braces for the next move.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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