The price of Bitcoin has surprisingly crashed from $68,000 to $65,000, reflecting a sharp decline that has sent shockwaves through the cryptocurrency market. This downturn comes in the wake of escalating geopolitical tensions, specifically Israel’s recent military actions against Iran, which have heightened uncertainty among crypto investors.
The price drop represents a significant setback for Bitcoin, which had been experiencing a period of remarkable gains prior to this incident. As of the latest reports, Bitcoin is trading at approximately $65,710, reflecting a loss of over 5.6% in the last 24 hours and 4.5% over the week. This decline has triggered a wave of liquidations in the market, with over $426 million lost across various cryptocurrencies, primarily affecting long positions.
The fallout from Bitcoin’s decline has not been limited to the leading cryptocurrency. Major altcoins such as Ethereum (ETH) and Binance Coin (BNB) have also experienced substantial losses, shedding more than 10% of their value. Meme coins like Dogecoin and Shiba Inu have faced even steeper declines, plunging by 20% and nearly 30%, respectively. The broader altcoin market mirrors Bitcoin’s downward trajectory, amplifying investor unease.
The recent price movements have resulted in a significant liquidation event. Over 151,000 traders faced margin calls hours after the news of the attack on Iran broke out, with Bitcoin accounting for the majority of these liquidations. Specifically, more than $104 million worth of long positions in Bitcoin were liquidated, while Ethereum saw around $48 million in liquidations.
Market analysts are sounding alarms regarding potential further declines. Markus Thielen, CEO of 10x Research, has warned that Bitcoin could drop to as low as $63,000, citing concerns about low trading volumes and liquidity that exacerbate risks for investors. His insights highlight an increasingly cautious sentiment among traders as they navigate this turbulent market environment especially as the Unites States presidential election draws closer.