Crypto liquidations hit $238M as Trump threatens 'very hard' Iran strikes

Trump's threat of intensified strikes on Iran triggered $238 million in crypto liquidations, with long positions absorbing most of the damage.

Crypto liquidations hit $238 million on Aug. 1 after Trump threatened "very hard" strikes on Iran, with longs absorbing 78 percent of losses, per CoinGlass.

Speaking at a cabinet meeting at Camp David on Friday, Trump said he is "losing faith" in Tehran and warned the US would be "hitting them very hard," adding that Iran "lies and misinterprets." Reports from the Wall Street Journal and CBS indicated officials discussed completing strikes before Monday's market open to limit economic disruption.

Bitcoin slipped below $63,000 on the risk-off move, with the total crypto market cap falling 1.03 percent to $2.16 trillion, CoinMarketCap data shows. The fear and greed index shifted from "extreme fear" to "fear," while oil prices climbed to $84 a barrel after Iran launched drone attacks on Kuwait on Aug. 1.

If Bitcoin closes below $63,000, the price could drop 4.5 percent to $60,345, with the RSI at 39 and a bear flag forming on the four-hour chart pointing to further downside. The pattern mirrors earlier episodes this year: a $450 million liquidation wave followed Trump's "MoU is over" declaration in July, and a $192 million event followed deal-talk stalling in June.

Iran Conflict Has Cost Crypto Hundreds of Millions All Year

The US-Iran conflict has been a recurring driver of crypto liquidations since late February 2026, when joint US-Israeli strikes, including hits on Iranian nuclear sites, first rattled markets. The conflict has since cycled through truces, Memoranda of Understanding, breakdowns, and fresh escalation waves.

The current threat involves coordination with Israel on strikes targeting Iranian energy infrastructure and refineries. That would mark one of the harshest campaigns yet and the first major return to combat operations for Israel since the fragile truce. Oil, inflation expectations, and Strait of Hormuz shipping risks are all in play, each factor historically negative for risk assets, including crypto.

White House Press Secretary Karoline Leavitt said the US "will win, and Iran will not have a nuclear weapon." Pentagon spokesman Sean Parnell said the Department was "locked and loaded." No final strike order had been given as of the time of writing, but the rhetoric alone was enough to flush leveraged positions from the market.

Pi Network and PUMP Defy Broader Selloff

Pi Network rose 6 percent to $0.086, forming a double-bottom pattern on the daily chart, with buyers positioning ahead of the Protocol 26 upgrade on Aug. 11. PUMP gained 7.7 percent to $0.0021, trading at its highest level since Feb. 17, though the broader market remained under pressure.

For traders, the pattern is well-established: geopolitical escalation headlines trigger immediate long liquidations in crypto's 24/7 market, sometimes followed by sharp short squeezes when de-escalation signals emerge. Position sizing and reduced leverage remain the clearest hedges until this weekend's developments become clearer.

This article is for informational purposes only and does not constitute investment advice.