More than $1.79 billion was liquidated from the crypto market as Bitcoin fell below $100,000.

Tensions escalated sharply in the Middle East over the weekend, causing significant fluctuations in global markets, as the price of Bitcoin fell below the $100,000 level for the first time since May. This decline occurred after the unexpected airstrike by the United States on Iran's nuclear facilities and the retaliatory vote by the Tehran parliament to allow the closure of the Strait of Hormuz, a critical energy chokepoint. According to Coinglass data, over 1.79 billion dollars in cryptocurrency positions have been liquidated since Friday, with nearly 70% of them being long positions. Bitcoin alone has fallen by up to 4.2% to 98,300 dollars by the end of Sunday before recovering approximately 3.1% in early morning trading in Asia.

Ethereum fell 17% over the weekend but showed a relatively similar recovery, rising 6.75% after the weekend's low. This leading alternative coin has decreased 21% since the local high of 2,877 dollars in mid-month. A broader sell-off has highlighted the sensitivity of risky assets to geopolitical shocks, especially as leverage levels in the cryptocurrency market remain high. "The fact that nearly a billion dollars was rapidly liquidated shows that many traders were positioned for relative stability, rather than a sudden escalation," a derivatives trader told CryptoSlate. In the traditional market, crude oil prices surged due to concerns about disruptions in global energy flows. Brent crude futures reached a daily high of $81.40, a five-month peak, before narrowing the gains to stabilize around $77.73, still up 0.93% on the day. WTI crude also followed a similar trajectory, peaking at $78.40 before dropping below $75. Analysts suggest that this decline is due to shipments still flowing through Hormuz. Sugandha Sachdeva of SS WealthStreet told Reuters that: "The current escalation could cause Brent crude prices to soar to $100, with $120 increasingly likely if Hormuz is actually blocked." Gold, often a choice during times of crisis, has defied expectations by falling 0.4% to $3,355/oz, while futures prices on COMEX dropped 0.5% to $3,370. Traders point out that the stronger U.S. dollar, bolstered by safe-haven flows, is the main reason for gold's underperformance. Tim Waterer, the chief market analyst at KCM Trade, said: "The rise in USD has anchored gold prices back despite the risks." S&P 500 futures fell 0.3% in pre-market trading on Monday, recovering from a larger overnight loss. The relatively muted response of stocks suggests that investors still view the conflict as a localized flare-up rather than a broader geopolitical crisis. U.S. Treasury yields were virtually unchanged, reinforcing that view. All attention will be focused on the US market opening at the end of today to see if oil and gold prices continue to fall along with the strength of stocks and Bitcoin. Concerns about oil supply disruptions continue. Iran's closure of the Strait of Hormuz remains a threat, not a reality. While the country's parliament has approved this move, shipping through this channel is expected to continue on Monday afternoon. However, this strait handles about 20% of the world's oil shipments, and even a temporary disruption could spread across the energy market and inflation expectations worldwide. The White House has threatened to use more force if Iran retaliates. Trump calls for negotiations while also stoking the flames, declaring that it is necessary to "Make Iran Great Again." The market will closely monitor any military or diplomatic developments this week. With Federal Reserve Chairman Jerome Powell expected to speak mid-week, traders are also considering whether geopolitical instability could impact the central bank's interest rate path. The rapid sell-off and partial recovery of Bitcoin is a clear reminder of its increasingly prominent role as a geopolitical gauge. Bitcoin is now reacting less to macro data than to missiles in the Middle East.