Trump Warning Triggers $238M Crypto Liquidations Amid Geopolitical Tensions

Crypto markets saw significant losses following US President Trump's warning of intensified military strikes on Iran. This led to $238 million in liquidations, mostly from long positions in Bitcoin and major altcoins. The decline was exacerbated by geopolitical tensions, which have historically caused large liquidation waves in the crypto market.

Traders remain cautious, reducing leverage amid ongoing uncertainty about potential strikes and their market impact. This follows a 2026 pattern where US-Iran conflicts repeatedly cause large liquidation waves in crypto.

The losses come after two months of outflows from American crypto ETFs, which saw net inflows of $172.4 million in July. Despite this, the overall monthly capital outflow was still significant, with a sharp outflow of $265.4 million on the last day of July.