A US military strike on an Iranian desalination plant this week cut water to 10,000 people and sent cryptocurrency markets into a tailspin. Bitcoin fell below $100,000. Over $700 million in leveraged positions were liquidated across exchanges.
The strike and its immediate fallout
The desalination facility was hit as part of a broader US operation. The attack disrupted water supplies for a community of 10,000. Within hours, crypto prices began to slide. Bitcoin dropped from above $100,000 to below that level in a matter of hours. The selloff was broad — major altcoins like Ethereum and Solana also took hits.
Liquidations pile up
Derivatives data shows $700 million in long positions were wiped out. The cascade of liquidations likely accelerated the decline. Some exchanges reported a surge in trading volume and brief system slowdowns as traders rushed to close positions. It's one of the bigger single-day liquidation events this year.
Bitcoin's $100,000 threshold
The $100,000 level had been a key support for weeks. Its breach could open the door to further losses. Traders are now watching to see if Bitcoin can reclaim that level or if the selloff deepens. The psychological mark matters — break it and sentiment can shift fast.
For now, the market is waiting. The next move may depend on whether the US-Iran situation escalates or cools down. No one's calling a bottom yet.
