The cryptocurrency market has shown high volatility in response to events in the Middle East due to escalating conflict between Israel and Iran.
Impact of Israeli Strikes on the Crypto Market
The crypto market overall lost 4% after Israel conducted airstrikes on Iran’s nuclear and ballistic sites, prompting a retaliatory response from Tehran. Iranian Supreme Leader Ayatollah Ali stated that Israel would 'pay a very heavy price.'
Crypto Fear and Greed Index
Solana led the losses among the top 10 cryptocurrencies with an 8.4% decline, followed by Ethereum at 7.7% and Dogecoin at 7.6%. The Crypto Fear and Greed Index also fell by 10 points, indicating reduced investor confidence in risk assets.
Overall Crypto Liquidations
Total liquidations in the crypto market over the past 24 hours reached $1.16 billion, according to Coinglass data. Long positions were hit hardest, with about $1.04 billion liquidated from traders betting on rising prices. BTC and ETH traders suffered significant losses, with liquidations of $46.38 million and $303.50 million respectively.
The escalation of conflict in the Middle East has significantly impacted the cryptocurrency market, leading to a decrease in capitalization and the liquidation of numerous positions. Investors appear to be exercising caution, reducing their activity amid global geopolitical instability.
