Israel Strikes Iran's Largest Gas Field
On Tuesday, Israel launched a strike on the South Pars gas facility in Iran, the country's largest gas field supplying roughly 70% of domestic gas. The attack reached the core of Iran's energy infrastructure, threatening nationwide electricity generation and sending shockwaves through every major asset class within hours.
Crypto Market Drops Across the Board
Total crypto market capitalization fell 3.54% to $2.45 trillion. Bitcoin dropped 4% to $71,417, losing $38 billion in market value. Ethereum fell 6.48% to $2,193. Solana declined 5.55%, XRP lost 3.66%. None of the top ten assets escaped the selloff.
Gold and Silver Fall Together, Oil Jumps
In the three hours following the news, gold fell 2% wiping $680 billion, silver dropped 2.5% erasing $110 billion. Safe-haven assets and crypto falling together signals traders reducing risk across the board rather than rotating. Oil jumped back above $97 per barrel as supply disruption risks were priced in.
Double Hit: Inflation Data and Geopolitics
The geopolitical catalyst landed on shaky ground. Earlier Tuesday, the US February Producer Price Index recorded its largest monthly gain in a year, exceeding expectations and pushing back hopes for Fed rate cuts in 2026. The higher-for-longer rate narrative already weighing on speculative assets got fresh ammunition just as Middle East news broke. Crypto absorbed both pressures simultaneously.
Leverage Amplifies Losses: $158M in Liquidations
The initial macro selloff turned aggressive as leveraged positions unwound. Over $158 million in long positions were forcibly liquidated within four hours. Bitcoin alone saw $41.93 million in liquidations over 24 hours. Forced selling added mechanical downward pressure, turning a potential 2% correction into a far more disorderly drop.
The Fear and Greed Index fell to 35, firmly in fear territory. Average crypto RSI dropped to 43.67, approaching oversold conditions.
All eyes are now on the Federal Reserve. The FOMC meeting concludes Tuesday with updated rate projections and a press conference from Chair Jerome Powell. A hawkish tone reinforced by hot PPI data could extend the selloff. A neutral stance might allow markets to stabilize around the $2.38 trillion technical support level analysts have flagged as key.