The crypto space woke up to a harsh jolt as U.S. strikes on Iranian nuclear facilities shook both geopolitics and market sentiment. President Trump confirmed the “total obliteration” of key sites, warning Iran against any retaliation. Iran’s top diplomat responded with veiled threats, while Polymarket bettors rushed to price in conflict risk: odds of the Strait of Hormuz closing spiked from 9% to 46% overnight.
The crypto market didn’t wait to process the fallout. Over $700 million in long positions were liquidated, with Ethereum leading the plunge - down over 7%. Bitcoin held its ground better, dropping just 1.4% to hover above $102K. On Myriad, sentiment flipped rapidly: 70% of users now bet ETH finishes 2025 under $2,000.
Meanwhile, OKX made quiet noise of its own. After resolving a $500M dispute with U.S. regulators, the exchange is eyeing a U.S. IPO and building a “super app” from its new San Jose HQ. Europe’s evolving MiCA regime, though meant to harmonize crypto oversight, is showing early cracks. As firms passport licenses from looser jurisdictions like Malta and Luxembourg, concerns are growing over a regulatory “race to the bottom.”
The world is watching crypto from very different angles - from war rooms to boardrooms. And as always, price reacts first.
