Crypto Markets Decline Following Weekend Gains Amid Middle East Tensions

On July 13, 2026, the cryptocurrency market faced a notable selloff after a bullish weekend. Bitcoin fell approximately 1%, trading around $63,100 after reaching over $64,300 at the weekly close. The altcoin market experienced even sharper declines, with LIT, a token that had recently rallied by over 200%, dropping 8% in its first significant pullback.

The selloff coincides with rising tensions between Iran and the U.S. over the Strait of Hormuz, which impacted not only cryptocurrencies but also traditional equity markets. South Korea's Kospi index, for instance, plummeted by 9.2%, while major indices in Japan and China also saw declines of more than 2%. This environment led to $253 million in liquidations within cryptocurrency derivatives markets, predominantly affecting long positions.

Despite the recent drop, Bitcoin derivatives positioning remained stable, with open interest holding steady at $17 billion. Analysts note a balanced positioning without significant new leverage being introduced, suggesting cautious sentiment among traders. The 24-hour put/call ratio indicated investor preferences leaning towards calls, although the overall demand appears to be tapering.

A notable insight from Coinglass showed that liquidations were skewed towards longs with Bitcoin and Ethereum taking the lead in notional losses. The liquidation heatmap suggests $62,000 as a critical level to monitor moving forward, which may signal potential further declines if breached.

Amidst the downturn, some tokens managed to show slight resilience. AI-focused tokens such as FET and NEAR experienced modest gains, rising around 1.5%. However, Solana's decentralized exchange, Jupiter, has struggled, losing more than 15% over the past week as trading volumes dropped to levels not seen since early 2025.

This selloff follows a period of bullish market activity, as many investors engaged in profit-taking after the recent surge. As the geopolitical landscape remains volatile, market participants remain cautious, considering potential impacts from ongoing tensions and liquidations.