The cryptocurrency market has experienced another sharp decline. As of June 21, the total market capitalization dropped from approximately 37,945 trillion won to about 36,528 trillion won, causing a shocking evaporation of around 334 trillion won in just one day. The main reasons for this decline include rising geopolitical risks surrounding Middle Eastern tensions, massive sell-offs by whale investors, and a chain of liquidations. Market-wide anxiety intensified, causing prices of Bitcoin (BTC), Ethereum (ETH), and other major altcoins to fall simultaneously.
The most powerful pressure factor stemmed from escalating military tensions between Israel and Iran. Concerns about potential US military intervention further stimulated investor anxiety. Trump's hardline stance on reviving the nuclear agreement with Iran has directly negatively impacted the market, raising fears that *potential military conflict* could become a reality.
Amid these geopolitical turbulences, Bitcoin declined 2% from $108,000 to $103,127 (approximately 147.32 million won) in a week, while Ethereum dropped nearly 10% to $2,456 (about 3.41 million won). Solana (SOL) and Doge (DOGE) also showed declines of over 11% and 10% respectively, increasing investor losses.
Another panic trigger in the market was the *massive sell-off by whale investors*. According to on-chain data analysis platform Glassnode, wallets holding Bitcoin for 6-12 months recently sold over $90 million (approximately 125.1 billion won). Long-term holders also began realizing profits, further spreading the selling trend. In early June, Bitcoin worth approximately $1.2 billion (about 1.668 trillion won) was liquidated for profit-taking, one of the largest scales this year.
This fear led to liquidation events. According to CoinGlass, positions worth approximately $503 million (about 696.7 billion won) were forcibly liquidated in just one day, affecting over 134,000 traders. Ethereum suffered the largest liquidation damage at $183 million (about 254.5 billion won). The largest single loss was in Bitcoin long positions, reaching about $8 million (approximately 11.1 billion won).
The altcoin market has been hit with a more severe compound shock. While Bitcoin declined by only 2%, Ethereum dropped 10%, Solana fell over 11%, and XRP decreased by 1.4%. The Blockchain Center's Altcoin Season Index currently stands at 22, indicating a strengthening *Bitcoin-centered market*.
This market crash may not be short-lived. Geopolitical instability, large-scale sell-offs, and high-interest environments are likely to inevitably expand market volatility in the second half of the year. Investors should focus on careful portfolio defense strategies rather than excessive leverage or short-term speculative approaches.
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