The crypto market reflected significant losses as the US officially entered the Iran-Israel war late Saturday night. According to President Trump, the US has bombed notable nuclear sites in Iran, signaling its first active strike in this geopolitical conflict.
The crypto market reacted with notable liquidations across the altcoin sector. Ethereum dropped over 5% following the news, trading below $2,300 for the first time in a month.
Also, Cardano is nearing a 3-month low following the news – down 6% today. AI agent coins suffered the biggest blow, as VIRTUAL and FET dipped nearly 10%.
Crypto Market Liquidations After US Strikes Iran. Source: Coinglass
While Bitcoin still holds above $102,500, indicators suggest it could potentially fall below the $100,000 psychological level if further escalations are reported over the weekend.
As of now, the market will be cautiously looking at Iran’s response. President Trump has stated that any response from Iran would result in further US actions.
Overall, crypto liquidations exceeded $670 million today, and further escalation could very well signal a short-term bearish cycle.
After a rough start to the week with massive liquidations, the crypto market has finally experienced some relief, with a rebound driven by favorable broader macroeconomic changes.
Liquidations over the past day totaled $384.4 million, a significant drop from previous days. Meanwhile, the global market cap rose 1.1% over the last day.
According to Coinglass data, $384.4 million was liquidated in the past 24 hours. Of this, $138.2 million came from long positions, while $246.2 million were short positions.
Specifically, Bitcoin saw $186.7 million in liquidations, with $146.0 million attributed to short positions. Ethereum experienced $73.6 million in liquidations, with $40.3 million from long positions and $33.1 million from short positions.
Meanwhile, Bitcoin regained ground over $80,000, trading at $82,299. This marked a 3.6% increase over the past day.
Notably, the recovery could be attributed to recent diplomatic developments. According to Bloomberg, Ukraine agreed to a temporary 30-day ceasefire in response to a US proposal. This has reduced geopolitical tensions that had previously weighed on the market.
Furthermore, Ontario suspended 25% tariffs on electricity exports to Michigan, New York, and Minnesota. This was also a major step towards easing trade tensions.
US political figures, including House Speaker Mike Johnson, have also provided much-needed reassurance to the markets. Johnson suggested that President Trump’s economic policies, which initially contributed to market instability, would eventually stabilize the economy.
“Give the president a chance to have these policies play out,” he said.
In addition, White House Press Secretary Karoline Leavitt noted that the market dip represented a temporary state rather than a definitive or permanent trend.
“We are in a period of economic transition,” Leavitt stated.
She emphasized the idea that market numbers, such as stock prices, trading volumes, and liquidations, reflect a specific point in time and can evolve. These combined factors—political reassurances, easing trade tensions, and a reduction in geopolitical risks—have contributed to the crypto market’s recent recovery.
Pi Network’s native token, PI, has bounced back following a few days of decline. It has noted a 6% gain in the past 24 hours to trade at $1.47 at press time.
The recovery comes ahead of Pi Day on March 14. There is also growing market speculation about a potential Binance listing.
PI Gains 21% as Traders Gain Confidence
PI has jumped 21.3% over the past 24 hours, driven by growing speculation over a potential Binance listing and the upcoming Pi Day announcements on March 14.
This date also marks the deadline for KYC completion and the migration of PI holdings from the mobile app to the Mainnet. These upcoming developments have triggered a new wave of PI demand, putting upward pressure on its price.
The steady rise in PI’s Relative Strength Index (RSI) reflects the surge in buying activity among spot market participants. The momentum indicator is in an upward trend and poised to break above the 50-center line at press time.
When an asset’s RSI is attempting to cross above its 50-neutral level, it signals a shift in momentum from bearish to bullish. This suggests that buying pressure is increasing, potentially leading to further price gains if the trend continues.
A confirmed move above 50 would reinforce positive sentiment around PI and attract more traders looking for upward momentum.
Furthermore, its positive Chaikin Money Flow (CMF) confirms this bullish outlook. This indicator, which tracks how money flows into and out of PI, is above zero at 0.16.
This trend indicates that buying pressure is stronger than selling pressure among PI traders. It signals that investors are confident in the asset, increasing the likelihood of further price appreciation.
PI Eyes Recovery After Steep Drop—Can It Reclaim $2?
PI has steadily declined, plummeting over 19% in the past week. This has pushed its price under a key price level of $1.62, which forms significant resistance. If the bullish trend persists and the demand for PI soars, its price could attempt to breach this level.
A successful break above $1.62 could propel PI above $2 and closer to its all-time high of $3.
On the other hand, a resurgence in profit-taking would invalidate this bullish projection. If selloffs spike again, PI’s price would resume its downtrend and fall to $1.34.
