Bitcoin experienced a sharp decline, dropping below $100K due to the unexpected U.S. strike on Iranian nuclear facilities. This news had a significant impact on the entire crypto market.
Bitcoin Price Crash
The price of Bitcoin fell to $99,627, representing a 6% decline in one day. The market capitalization of the cryptocurrency now stands at $1.98 trillion.
Crypto Market Reaction
The drop in Bitcoin caused a bearish trend across the crypto market: Ethereum fell to just above $2,200, and Solana dropped below $129. The total cryptocurrency market capitalization declined by 5%, currently valued at $3.04 trillion. Over $1 billion was liquidated in 24 hours, primarily affecting BTC, ETH, and SOL. Bitcoin's trading volume spiked over 33%, indicating panic among investors.
Outlook and Consequences
Rising tensions with Iran raise concerns about possible counterattacks, which could exacerbate the situation. In the current climate, Bitcoin hovers just above $99K and may drop to $95K or even $92K if conditions worsen. Meanwhile, oil and gold prices are rising, and the dollar is strengthening, indicating a shift towards safer assets.
The cryptocurrency market remains under pressure due to global geopolitical factors. Investors are closely monitoring developments, as the next 48 hours could significantly impact the market.
