Cryptocurrency markets experienced a Monday selloff as rising Middle East tensions and investor profit-taking triggered $253 million in liquidations across global financial and digital asset sectors.

Key Points

• Bitcoin fell 1% to $63,100, while the altcoin LIT dropped 8% following a recent 200% rally.
• Geopolitical instability between Iran and the U.S. over the Strait of Hormuz pressured both crypto and global equities.
• South Korea’s Kospi index declined 9.2%, with major losses reported in the tech and memory-chip sectors.
• Derivatives markets saw $253 million in liquidations, with long positions accounting for 76% of the total volume.
• Despite the broader downturn, AI-focused tokens like FET and NEAR recorded gains of approximately 1.5%.

Why it Matters

The market pullback highlights how sensitive digital assets remain to sudden geopolitical shocks and broader macroeconomic instability. This volatility serves as a reminder that even periods of bullish momentum can be quickly reversed when investors prioritize risk mitigation during international conflicts.