Crypto Market Sheds $240B in a Week Amid Israel-Iran Conflict and Sell-Offs

The crypto market lost $240B in value this week as geopolitical risks, whale sell-offs, and liquidations hit Bitcoin, Ethereum, and altcoins

Written by: Arslan Butt • Saturday, June 21, 2025 • 1 min read

• Last updated: Saturday, June 21, 2025

Quick overview

$240 billion was lost in the cryptocurrency market over the past week, with total capitalization down 1.26% to $3.21 trillion.
Bitcoin fell 2% to $103,127, while altcoins like Ethereum and Solana experienced declines of 10% and 11%, respectively.
Geopolitical instability, profit-taking by long-term holders, and liquidations of leveraged positions are driving the market downturn.
The market remains vulnerable to external shocks, leading to fragile investor sentiment in the short term.

The global cryptocurrency market tanked this week, with total capitalization down 1.26% to $3.21 trillion on June 21. That’s $240 billion erased in 7 days. Bitcoin (BTC) fell to $103,127—2% down for the week. Altcoins suffered even more: Ethereum (ETH) -10% to $2,456, Solana (SOL) -11%.

The downturn is being fueled by geopolitical instability, long-term holders taking profits and leveraged positions getting liquidated.

Geopolitical Fears Spook Investors

The Israel-Iran conflict is the top market fear. Investors are worried about US intervention especially after former President Donald Trump’s warning to Iran regarding nuclear deal negotiations.

This has created a risk-off environment with capital fleeing high volatility assets like cryptocurrencies. As tensions escalated:

Bitcoin from $108,000 to $103,000 in a week
Ethereum, Solana, Dogecoin all down over 10%
Altcoin Index to 22, meaning Bitcoin dominance is increasing

Geopolitical crises always lead to higher volatility in traditional and crypto markets as investors seek safety.

Whales Exit, Liquidations Soar

Adding to the selling pressure, whales are selling to take profits. Glassnode data shows wallets holding BTC for 6-12 months sold over $900 million in Bitcoin. Long term holders (1+ year) sold $1.2 billion in early June—the most this year.

As prices dropped, leveraged traders got liquidated:

$503 million in crypto positions liquidated in 24 hours
134,000 traders affected across major exchanges
Ethereum $183 million liquidated
Largest single liquidation $8 million BTC on Bybit

These forced sales accelerated the market decline especially for altcoins which lack the liquidity and stability of Bitcoin.

Altcoins Get Hit

While Bitcoin’s 2% drop is small, altcoins took the brunt:

Ethereum -10%
Solana -11%
XRP -1.4%

Bitcoin is strong as investors are rotating out of smaller coins into BTC.

Points:

$240B lost in 7 days
Both Bitcoin and Ethereum down
War, profit taking and liquidations are the cause

Market is still vulnerable to external shocks and sentiment will be fragile short term.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.