The cryptocurrency market experienced a sharp decline early Friday due to geopolitical events. Bitcoin dropped below $104,000 while Ethereum lost over 10%.
Reasons for the Decline
The decline in cryptocurrency prices was triggered by Israeli airstrikes on Iran, which intensified global geopolitical tensions and led to a widespread 'risk-off' sentiment among investors.
Liquidation Data
According to Coinglass data, over the past 24 hours, the cryptocurrency market saw liquidations exceeding $1.1 billion. Bitcoin-backed perpetual contracts faced nearly $444 million in liquidations, with $422 million accounted for by long positions and about $22 million by short positions.
Market Analysis and Forecasts
Market analysts noted a spike in trading volumes and observed that the Moving Average Convergence Divergence (MACD) indicator is signaling oversold conditions, though no immediate reversal is evident. Caroline Mauron, co-founder of Orbit Markets, commented: 'Crypto is reacting negatively to the Israel-Iran strikes, in line with major risk assets. We expect technical support around $101,000, but geopolitical news will dominate short-term price action.'
The current situation in the cryptocurrency market demonstrates how geopolitical factors can significantly impact asset prices. Investors continue to monitor the market, awaiting clearer macroeconomic signals.
