The United States paused its airstrikes on Iran early Friday after 13 consecutive nights of bombing, a move that sent shockwaves through the crypto market. The pause triggered roughly $80 billion in losses across digital assets, with Bitcoin and Ethereum taking the biggest hits.
A sudden halt after 13 nights
The U.S. military had been striking Iranian targets nightly since July 12. The pause, announced without a clear timeline, caught many by surprise. It wasn't immediately clear whether the halt was tactical or a prelude to broader de-escalation. The White House has not commented on the duration of the pause, leaving traders guessing.
Market reaction
Investors reacted swiftly. The total crypto market cap shed about $80 billion in hours. Bitcoin and Ethereum both fell sharply, dragging altcoins down with them. The selloff was broad and fast, with little in the way of support until late in the session. Trading volumes spiked as panic selling set in. On major exchanges, order books thinned as sellers overwhelmed buyers. Bitcoin dropped below key support levels, and Ethereum followed suit. The selling pressure was relentless for the first few hours.
What traders are watching
The White House has not indicated whether the pause is temporary or permanent. Traders are watching for any sign of escalation or de-escalation in the coming days. The lack of clarity is keeping volatility high. Some are looking to the next White House briefing for clues. The market had been bracing for further strikes, so the pause caught many off guard. Crypto markets have been sensitive to geopolitical shocks, and the Iran situation is no exception.
