US Threatens Strike on Iran; Crypto Traders Brace for Volatility
As of Mon, Feb 23, 2026, fresh reports that a US military strike on Iran could happen within hours have heightened market anxiety and sparked a risk-off reaction in crypto. Traders are dialing back leverage and liquidity providers are reportedly pulling bids and offers, a combination that typically translates into larger intraday swings and wider spreads across exchanges.
Why it matters: crypto markets are more prone to abrupt moves when geopolitical shocks hit because thinner order books and crowded derivatives positions can produce outsized liquidations. Participants will be watching funding rates, stablecoin flows and on-chain activity for early signs of stress; until clarity returns, many risk managers are likely to favor lower exposure and tighter risk controls.