Link copied 
The digital currency market experienced significant turbulence on Monday, primarily attributed to escalating conflicts in the Middle East. Crypto enthusiasts incurred losses exceeding $100 million due to sudden liquidations as cryptocurrency prices declined.
In the U.S. afternoon, CoinGlass data revealed that long positions, which anticipate price increases, were liquidated, resulting in approximately $105 million in losses. This marked the most significant one-day liquidation event since September 11.
The increased tensions between Israel and Hamas, combined with broader Middle East instability, led to investor anxiety, causing a shift away from volatile assets. Bitcoin, the leading digital currency, saw a decline of over 2.4% before recovering and settling at $27,700. Ether experienced a 4.7% drop, while other major cryptocurrencies, including Solana, Polygon's token, and Polkadot, observed declines ranging from 5.8% to 6.9%. A modest rebound occurred later.
Liquidations in the cryptocurrency sector happen when leveraged trading positions are closed by an exchange due to traders' inability to maintain the required margin or lack of funds to sustain open positions.
Ether derivatives traders suffered the most significant losses, with declining prices leading to liquidations of nearly $33 million worth of long positions in a day, as reported by CoinGlass. Notable examples included the liquidation of a $4.5 million long order of ETH-BUSD on the Binance cryptocurrency exchange.
Bitcoin experienced liquidations totaling $18.25 million, followed by Bitcoin Cash and Bancor's token, with liquidations exceeding $3 million.
As the world closely monitors these geopolitical events, many financial analysts predict volatile weeks ahead for the cryptocurrency market and advise traders to exercise caution.
