The value of cryptocurrencies in the market has decreased by more than $430 billion due to heightened tensions between Iran and Israel. As a result, the total crypto market capitalization dropped by around 20%, from $2.64 trillion to a low of $2.21 trillion, triggering widespread panic selling. The coming days will be crucial as this unexpected market downturn shakes investor confidence.
Iran is responding with potential reprisals, starting with drone strikes against Israel, following Iranian assertions that Israeli forces targeted and killed Iranian diplomats, including high-level military personnel, at the consulate in Damascus, Syria. However, Israel hasn’t acknowledged or denied their role in the attack.
Last week took a toll on the crypto market, causing pessimism among some investors. However, others remain composed, believing that a correction before Bitcoin‘s halving event, which historically occurs, is imminent. The price of Bitcoin plummeted to a record low of $60,660 but bounced back to the resistance level of $64,300 within hours. Presently, Bitcoin is being traded at $64,000.
According to Rekt Capital’s assessment, the ongoing Bitcoin cycle is progressing faster than past ones. He explained, “The latest new record-high prices before the halving event indicate this acceleration. However, the recent dip and sideways trend in the Re-Accumulation Phase are essential for bringing this cycle back in line with historical trends.” In simpler terms, Rekt Capital believes that these price dips and periods of stability help adjust the current Bitcoin cycle to align more closely with how previous cycles have unfolded.
The cost of Ethereum (ETH) has fallen by an additional 9%, causing its price to dip below the $3,000 mark. As a result, cryptocurrencies such as Solana (SOL), Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), and Shiba Inu (SHIB), among others, have experienced more significant losses of between 20% and 50%.
According to analyst Benjamin Cowen, as ETH/BTC reaches the 2021 price level of approximately 0.46, there’s a prediction that the Ethereum-to-Bitcoin ratio may hit its rock bottom this summer. In the previous market cycle, ETH/BTC experienced a significant downtrend following the first interest rate reduction and breaking through support; it continued to decline for about two months before reaching its lowest point.
As whales ponder purchasing during market dips, a significant threat emerges in the DeFi sector. With CRV dipping to $0.42, Curve founder Michael Egorov is at risk of having his lending positions liquidated. In total, Michael has pledged approximately 371 million CRV ($156 million) across five addresses on six different lending platforms to secure $92.54 million in stablecoins. The current health rate stands around 1.1, putting these positions at risk of being liquidated.
According to Coinglass data, over $2 billion worth of cryptocurrency positions were forcedly closed (liquidated) in the market during this intense selling period. Approximately $1.5 billion belonged to long positions, while around $500 million came from short positions since last Friday. The crypto market underwent another significant liquidation event on Saturday, amounting to approximately $950 million.
Within the last day, more than a quarter of a million traders (252,000) had their positions closed for losses, with the largest single liquidation order occurring on the crypto exchange Binance – resulting from the sale of BTC worth approximately $8.46 million.
CoinGape has reported the crypto market crash in detail, giving insights into how it started, other reasons for the correction, and experts’ prediction on how low can Bitcoin fall before it starts to bounce. Traders and investors must remain cautious before the latest data on the US dollar index (DXY) and US 10-year treasury yield comes. CME Bitcoin futures contract trades to also open today at 5 PM CT, giving further guidance on market direction.
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2024-04-14 08:50