Crypto Market Plunges Amid Geopolitical Tensions
On Thursday evening, the crypto market took a sharp downturn. This was due to a risk-off sentiment sparked by Israelâs attack on iranâs nuclear sites. The situation could lead to broader regional conflict, causing investors to panic.
Bitcoinâs price dipped below $105,000. The total crypto market value, as tracked by coinmarketcap, fell to $3.26 trillion. Liquidations surged by 252%, totaling over $1.15 billion. Over 247,000 traders faced liquidations.
Altcoins fared worse than Bitcoin. The SPX6900 (SPX) token dropped by 20%.Fartcoin (FARTCOIN), Celestia (TIA), and Bonk (BONK) fell by over 15%. The stock market also declined, with futures tied to major indices falling by over 1%.
Israelâs attack could push crude oil prices higher, affecting inflation and interest rates. this could impact riskier assets like cryptocurrencies. however, history shows that Bitcoin and altcoins tend to recover after initial drops.
- Bitcoin fell to $74,488 in April after trumpâs âLiberation Dayâ speech but later surged to $111,928.
- During the COVID-19 pandemic, Bitcoin dropped from $10,480 to $3,948 but later peaked at $68,897.
Bitcoinâs strong fundamentals and technicals suggest the bull run may continue. Demand is rising as ETF inflows grow. Supply on exchanges has dropped, and the funding rate has surged.This pullback could be part of a bullish pattern, with Bitcoinâs target projected above $140,000.
